Sentences with phrase «growth of household debt»

The growth of household debt Number of mortgages delinquent 60 or 90 days Number of car loans that are delinquent Growth of student loans Delinquent student loans

In recent years we have given a lot of attention to the growth of household debt and its possible effects on the macro economy.

Not exact matches

Debt levels for the average Canadian household are moving down (perhaps we've been taking those warnings from the Bank of Canada to heart), and as a result there's been «modest» growth in consumer spending, said Ferley.

The IIF said Argentina, Nigeria, Turkey and China recorded the largest buildup in debt ratios over the year, the latter fueled by ongoing growth in indebtedness of households and the nation's finance sector.

Their newest paper uses historical data from multiple countries to show that an increase in the ratio of household debt to gross domestic product over a three - to - four - year period predicts a decline in economic growth.

According to a report released Thursday by the Federal Reserve Bank of New York, a substantial increase in household debt in 2016 was led largely by growth in student debt and auto debt.

That's a drag on growth, but a welcome one if it means households have begun doing something about record levels of debt.

If we came to learn that excessive household debt posed a bigger threat to economic growth than does a certain level of government debt, then policy makers would want to take that into account when setting interest rates.

Subjects touched upon by Poloz during his speech and the ensuing round of questions also included fostering ties with the emerging economies of India, China, and Brazil, and the growth in household debt among Canadians.

Of course, rock - bottom rates and a strong Canadian dollar, he added, are the opposite of what the Canadian economy needs right now in order to kick its current addiction to household debt and condos and switch to a more sustainable growth model fuelled by exports and business investmenOf course, rock - bottom rates and a strong Canadian dollar, he added, are the opposite of what the Canadian economy needs right now in order to kick its current addiction to household debt and condos and switch to a more sustainable growth model fuelled by exports and business investmenof what the Canadian economy needs right now in order to kick its current addiction to household debt and condos and switch to a more sustainable growth model fuelled by exports and business investment.

NerdWallet's 2017 household debt study shows that several major spending categories have outpaced income growth over the past decade; many Americans are putting medical expenses on credit cards; and the average indebted household is paying hundreds of dollars in credit card interest each year.

So, in summary these are some of the themes we might expect to see in the next chapter — the impact of technology and the growth of Asia; the normalisation of monetary conditions; the effects of higher levels of household debt; and the capability of our workforce and businesses to be flexible, innovative and adaptable.

Indeed, the strong growth of investor housing loans has driven the growth in household debt (as a share of disposable incomes) over recent years and contributed to a rise in both housing prices and dwelling construction.

A long period of lacklustre wage growth suggests the only way households can satisfy their spending habits is to keep adding to Canada's record pile of private debt.

Posted by Nick Falvo under Bank of Canada, budgets, China, Conservative government, deficits, economic crisis, economic growth, employment, exchange rates, federal budget, fiscal policy, global crisis, household debt, IMF, interest rates, labour market, macroeconomics, manufacturing, monetary policy, recession, stimulus, unemployment.

Growth in household credit has remained relatively stable at around 5.5 per cent since the beginning of the year, a pace below the historical average (Chart 22), following an extended period of rapid growth that led to a substantial buildup in householdGrowth in household credit has remained relatively stable at around 5.5 per cent since the beginning of the year, a pace below the historical average (Chart 22), following an extended period of rapid growth that led to a substantial buildup in householdgrowth that led to a substantial buildup in household debt.

The real issue that was not addressed in the budget is the absence of any economic engine to spur a recovery in growth in 2014 and beyond, The household sector is deep in debt; housing construction has stalled; companies lack confidence and are not investing; the federal and provincial governments are in serious restraint mode; and the export sector is weak and deteriorating.

Without a massive transfer of wealth from the state sector to the household sector it will be impossible, I would argue, for GDP growth rates of anything above 3 - 4 % — and perhaps even less — to occur without a further unsustainable increase in debt, whether that increase occurs inside or outside the formal banking system and whether or not discipline has been imposed on borrowers.

«However, historically high levels of household debt and low wage growth will offset some of the positive impact of recent strong employment data, so consumers are likely to remain cautious.»

The PBO identified four key downside risks to the private sector forecast: global growth, especially in the U.S. could be slower than anticipated; the appreciation of the Canadian dollar could adversely affect exports; sovereign debt issues in Europe could restrain recovery there and put upward pressure on global interest rates; and the high level of household debt in Canada could restrain domestic demand.

Posted by Nick Falvo under Bank of Canada, banks, budgets, Conservative government, consumers, deficits, economic growth, economic models, economic thought, employment, Europe, exchange rates, federal budget, fiscal policy, household debt, housing, inflation, interest rates, monetary policy, oil and gas, prices, Role of government, social indicators, tar sands, US.

And by that we mean bring an end to double - digit price gains, bring about a steep correction in house prices to levels the city's lowly middle - class incomes can afford, bring about an end to staggering household debt levels and ultimately, bring about the end of housing as the economy's engine of growth?

Report to CMHC warns steady climb of household debt - to - GDP level puts Canada's economic growth prospects at risk

Although it is less than 2 per cent of total household debt, growth in margin lending has accounted for over a fifth of the rise in banks» personal lending (excluding credit cards) since 1996.

The debt - servicing ratio on household borrowing has now surpassed its late 1980s peak, and is set to rise further over the first half of 2004, given current rates of household credit growth.

This report marks the fifth consecutive year of positive annual household debt growth.»

Over the past year, the strong pace of debt accumulation has outstripped the growth in the household sector's assets, despite further significant gains in housing wealth (Table 9).

These changes have resulted in a significant upward shift in the ratio of household debt to GDP, and thus a period of above - average credit growth.

The growth of gross household debt has seen the household sector's debt to income ratio on a gradually rising trend for much of the past decade.

Over the year to February, credit to the household sector grew by 11 per cent, compared with growth in households» nominal income which has been running at around 5 per cent; much of the growth in debt has occurred in home mortgages.

Growth has been fueled by the growth of household and foreign debt rather than by business investment, and we have become dangerously reliant on the resource sGrowth has been fueled by the growth of household and foreign debt rather than by business investment, and we have become dangerously reliant on the resource sgrowth of household and foreign debt rather than by business investment, and we have become dangerously reliant on the resource sector.

Despite the rhetoric of both the Democratic and Republican parties heralding the U.S. as a republic of stockholders, Phillips observes that «middle - class families held (just) 2.8 percent of the total growth in stock market holdings between 1989 and 1998, but accounted for 38.7 percent of the rise in household debt.»

In particular, a massive overhang of debt from a decade - long boom when economic growth was based on unsustainable household borrowing, unrealistic house prices, dangerously high banking leverage, and a failure of governments to put their public finances in order.

The housing market has been a major driver of economic growth across the country in the last decade and this nurtured consumer confidence in taking on household debt.

• Growth in household debt slowed to 0.9 % in the first quarter, driven by a slower rate of borrowing in consumer credit and mortgage loans, Statistics Canada said Friday.

The presentation contained a warning: the steady climb of the household debt - to - GDP level had put Canada's long - term economic growth prospects at risk.

Canadian households were already stretched before the holidays, with the pace of debt growth far outstripping wages over the last decade or so.

«However, the long - run negative effects of debt eventually outweigh their short - term positive effects, with household debt accumulation ultimately proving to be a drag on growth.»

OTTAWA — Canadian household debt rose to a new record high in the fourth quarter of last year, fuelled in large part by mortgage growth.

TD Bank economist Diana Petramala said low interest rates have allowed households to take on more debt, mostly backed by mortgages, and predicted the growth in debt will outpace income growth in the first half of this year.

Poloz then specified that these uncertainties comprise: inflation, the degree of excess capacity, continued softness in wage growth, and the elevated level of household debt.

Yes, the Canadian housing market remains vulnerable to some weakness, and yes, more credit growth appears unsustainable for households that already have debt - to - income ratios of 170 per cent.

«I will continue to act to ensure that household debt levels are sustainable, that lenders are acting prudently and that increases in interest rates or a housing market downturn don't risk the economic growth we are working so hard to accelerate,» Morneau said in a speech to the Toronto Region Board of Trade.

As CIBC economist Avery Shenfeld noted recently, much of the growth in household borrowing is coming from those who already have high debt burdens, not «less indebted families getting drawn to the punch bowl by the promise of low [interest] rates.»

I think this example is pretty instructive as it shows that a declining US household debt to income ratio resulted in a lower growth rate but not a complete collapse in their economy (of course excluding the 2008 - 09 recession which was short - lived).

Another area of growth has been the rise in household credit in the form of mortgage debt.

While rising rents and lack of inventory might nudge renters into buying a home, National Association of Realtors ® Chief Economist Lawrence Yun points out that tight credit standards, student debt, and the growth of multigenerational households are contributing to the lowest number of first - time home buyers in decades (as shown in the 2014 NAR Profile of Home Buyers and Sellers).

Demographics, supply, demand, migration, regulatory changes, population growth, home prices, interest rates, household debt, employment... All of these and more are impacting the local and national housing markets.