Canada now trails only Greece as a leader in worldwide household debts, according to new research.
The McKinsey Global Institute’s new report said Canada has seen the second-highest increase in household debt, relative to income, among developed countries since the Great Recession.
The institute looked at the growth in household debt between 2007 and 2014.
Moreover, it placed Canada in the list of seven countries vulnerable to a crisis caused by excessive consumer debt. The others are the Netherlands, South Korea, Sweden, Australia, Malaysia, and Thailand.
“A number of countries in northern Europe, as well as Canada and Australia, now have larger household debt ratios than existed in the United States or the United Kingdom at the peak of the credit bubble,” the report stated.
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