Canada and U.S. Have Similar Debt Levels, But Took Different Roads to Get There

• Canada and the U.S. have similar total debt levels relative to GDP - 335% for the U.S. and 341% for Canada

• Debt trajectories differed - the U.S. saw debt surge pre-2008 crisis, while Canada's debt rose steadily after 2015 as rates fell

• Unclear if debt levels are sustainable long-term

• Low real interest rates and debt as an asset to creditors help sustain high debt

• U.S debt surged due to government spending during pandemic; Canada's dipped slightly due to corporate debt drop