International Monetary Fund report warns of Canada’s high debt levels

The International Monetary Fund warns in a new report about Canada’s high debt levels and higher-than-average pressure on Canadian households’ ability to pay down that debt.

The IMF says in its Global Financial Stability report released Wednesday that these dynamics in Canada’s private non-financial sector leaves its economy more sensitive to tighter financial conditions and weaker economic activity.

Canada was named along with Australia, Brazil, China and Korea as countries where the debt-service ratio has risen to high levels.

The IMF also says there was a particularly strong need in these economies for financial sector policy to guard against letting these imbalances grow any further.

The IMF also notes that in Australia, China and Canada, where the ratio of household debt payments relative to disposable income is highest, it has been coupled with a steep increase in house prices.

It warns that past experience shows these two factors can create strain and, with a sharp fall in asset prices, can spill over to the economy.

Just Posted

WATCH: Red Deerians can have a say about crime fighting

Municipality will poll citizens about policing priorities

Updated: Red Deer man sentenced to six years for stabbing death

Shane Dion McPhee pleaded guilty to manslaughter for February 2016 slaying

Watch: Pandas on the move

Artist Patrick LaMontagne shows his work in this time lapse video

Watch: Pandas on the move

Artist Patrick LaMontagne shows his work in this time lapse video

Rebels Fan Fest set for Wednesday

Time to cheer on the Rebels; Tickets on sale for WHL playoffs

Uber self-driving vehicle hits, kills pedestrian in Arizona; Company stops tests

TEMPE, Ariz. — Uber says it has suspended all of its self-driving… Continue reading

Tories want debate on 12-month mission to support UN mission in Mali

OTTAWA — Canada’s official Opposition wants a full parliamentary debate on the… Continue reading

Brand of lean ground beef recalled due to possible presence of E. coli

OTTAWA — A brand of lean ground beef is being recalled because… Continue reading

Police chief: 4th bombing shows ‘different level of skill’

AUSTIN, Texas — Texas’ capital city was rocked by the fourth bombing… Continue reading

Lacombe Skating Club presents Broadway on Ice

The Lacombe Figure Skating Club hosted its year-end carnival with a Broadway… Continue reading

Most Read

Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month