Crawl Across the Ocean

Monday, January 25, 2010

Good News / Bad News

Paul Kedrosky links to a McKinsey report that contains some information I've been looking for for a while now.

In particular, this chart, showing total debt as a percentage of GDP for Canada (click to enlarge).

The good news is that of all the countries shown, the total debt/gdp ratio in Canada is the lowest. The bad news is that the line on the chart for Canada is going almost straight up and that when the folks at McKinsey started factoring in more qualitative factors to assess risk levels, they came up with the following chart...

... which echoes concerns recently expressed by the Bank of Canada about household debt in Canada.

Anyway, it's nice to finally have at least an estimate of the path of total debt/gsp in Canada.

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  • Not to be cheeky, but what does this do to the whole "government should be run like a business/household" argument so beloved of a particular political persuasion?

    By Blogger Andrew W., at 1:04 PM  

  • No doubt we will soon hear calls for Canadian households to be run more like the government (pre-Harper, of course).

    By Blogger Declan, at 5:58 PM  

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