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Economic News

Canada: More bad news just in time for the holidays

December 12, 2022
Randall Bartlett
Senior Director of Canadian Economics

Canada’s national net worth declined by 3.3% q/q in the third quarter of 2022 – the largest quarterly drop since Q4 2008. Meanwhile, the pace of household borrowing took a significant step back in Q3, as Canadians added $33.0 billion in new debt – a 1.2% increase. Despite the slower pace of debt accumulation, household credit market debt as a proportion of household disposable income increased to 183.3% in Q3 from 182.6% in Q2. With asset values falling and liabilities still increasing, Q3 is likely the first clear indication of what lays ahead for Canadians. While we don’t think the Bank of Canada is blind to these considerations, it made clear with last week’s outsized hike that there is more pain to come. And just in time for the holidays.

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