High levels of Canadian household debt are causing concern among the international banking community as levels exceed peers such as the US and UK.

The Bank for International Settlements, an organization owned by major central banks, says that Canadian households had a combined $4.4 trillion of debt in the first quarter of 2016, 288 per cent of GDP.

The BIS says that the level of Canadian household debt was “unusually high” and David Rosenberg, chief economist of Gluskin Sheff & Associates Inc. told Bloomberg that “This debt overhang represents one thing and one thing only: a pervasive constraint on Canada’s economic growth potential.” 

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