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Economic Viewpoint

Business Debt

December 17, 2018
François Dupuis, Vice-President and Chief Economist
Mathieu D’Anjou, Deputy Chief Economist • Hendrix Vachon, Senior Economist

Business debt appears high in some countries. This can feed the fears surrounding future economic growth. Interest rate increases are still a possibility, and business profitability could fall due to the costs associated with debt. That being said, other indicators paint a brighter picture despite the high level of indebtedness. Moreover, it may be preferable to look at the problem of debt as a whole. Government contribution to total debt in advanced countries has outstripped that of businesses over the last 10 years.

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