Canada will face a debt crisis and enter recession within 3 years according to Steve Keen of the Kingston University London. The economist named 7 countries that are most vulnerable to a debt crisis; China, Australia, Sweden, Hong Kong, Korea and Norway are the others.

Keen warned that even though government programs, for example schemes to help first-time home buyers and central bank stimulus, can delay a crisis GDP must grow faster to avoid a continued escalation of debt levels. He said that as debt levels soar lenders will begin to reduce their willingness to offer credit to companies and individuals, resulting in a new ‘credit crunch’ as seen during the financial crisis.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate


More market watch: