The economy of Canada shows signs of improvement, however, the average Canadian household is at risk of debt and increasing home prices based on the monetary report of the economy, rendered by the Organization for Economic Co-operation and Development.
The reported given by the intergovernmental Paris-based agency mentioned the adjustment Canada’s economy went through due to the decrease in the price of a commodity, with non-energy sectors having more activity than that of energy sectors. The agency foresaw the GDP for the country to have grown by 1.2 per cent in the year and 2.1 per cent in the upcoming year, which shows to be much more promising than that of what the Bank of Canada predicted.
Middle-class families are however vulnerable to increased rate or a price correction in the Toronto and Vancouver areas as a result of the high housing prices. The previous changes in the mortgage rules can cause buyers to deviate from the markets cause of their high prices, nonetheless, it encourages measures that will be imposed in the regions to help deal with the issue concerning housing affordability.
The report cautioned again increased levels of consumer debt as well. Canadians are encouraged to take on more credit because of the continual ongoing period of low-interest rate, most especially “with household debt continuing to edge up from already high level,” as mentioned by the OECD.