Canada labeled with “Domestic Vulnerability”

Oct 23, 2012

Last week the International Monetary Fund (IMF) labeled Canada with “domestic vulnerability” due to a softening housing market, unemployment rate of 7.3 per cent and a record personal debt levels. Economists point out that at 163 per cent of income, our debt ratio is similar to the Americans before their economic drop. The IMF shaved its 2012 growth projections for Canada from 2.1 per cent to 1.9 and two per cent next year, down from 2.2 per cent. This compares to global growth predictions of 3.3 and 3.6 per cent in 2012 and 2013 and Edmonton and Calgary growth projections of about 4%. A declining housing market puts pressure on family debt, seriously affecting what we buy — a key driver of economic growth.