Currently there is a lot of speculation as to just what state Canada’s economy is really in. It has been said that according to the data that the country is in a recession. There are some experts that believe that it is not that bad as yet while there are others that feel that it is that bad and going to get worse.
For individual families that are having a tough time financially they look more as to what is going on in their own financial situation rather than what is going on with the country’s finances. People become confused when they see things taking place like a housing boom, for example.
Some of the experts believe that one of the biggest problems that people are facing is their household credit or their household debt. It is being reported that the total household debt for the country now surpasses the GDP most of this is for residential mortgages. What this all works out to is that for the average household indications are that for their household this is more than 160% of their disposable income.
Another problem that is being identified that is affecting the economy according to the professionals is the continuous rise in the price of housing. Although every country goes through ups and downs with their house pricing it usually corrects itself or balances out, but this doesn’t appear to be happening in Canada. Statistics show that the increase in pricing for housing began around the middle of the 1990s and has continued to grow since then. One of the concerns is that the housing prices are actually overvalued and it is believed that this could be as high as 30%.
There has been a great deal of concern over the lower prices in oil and the impact that it is already having on the economy and how much more is it going to continue. The biggest hit here has been the employment market which was already fragile to begin with. The continuous lowering of prices in oil affects many different industries in the employment sector. Some provinces such as the oil rich provinces are suffering a great deal more than others.
There are some indications that private individuals are taking out mortgages at a low rate on their homes and lending this money to others that cannot qualify for mortgages at a decent rate.
These are the basic woes that you will see in the news media that make for a general conversation as to the economy in Canada. Each family however, has their own financial problems to deal with and these can vary. They may fall into some of the sectors and be affected by some of these situations but there are also individual issues that have to be dealt with. The best step for every family to take is to focus on their own needs and requirements, and what steps they can take to lessen the negative impact of the economy on their family and what they can do personally to strengthen their financial situation.
