The strong GDP performance over the first half of the year means that Canada will probably finish at the top of the G7 growth ladder this year. More worryingly, however, it also takes first place when it comes to household indebtedness. Rising household debt, which has been supporting economic growth, isn’t a recipe for long-term success. At its current level, Canadian household debt looks outlandish when compared to the rest of the G7 and brings with it a risk of financial instability.
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