Sources confirm that Canada’s economic engine is sputtering, and British investors holding billions in Canadian bonds and equities are about to feel the chill. The numbers are stark: household debt sits at 184% of disposable income, the highest in the G7. The housing market, once a safe bet, is now an overleveraged casino.
And the government’s balance sheet? A mess of red ink, with a deficit that ballooned to $40 billion last year. Uncovered documents from the Bank of Canada show internal warnings about a 'sharp correction' in asset prices.
But no one in Ottawa is sounding the alarm because they’re too busy cutting ribbons on new spending. The reality is that Canada’s economy is addicted to cheap credit and immigration-fuelled demand. When the music stops, British investors who chased yield in Canadian real estate and corporate bonds will be left holding the bag.
The numbers don’t lie: this is a slow-motion train wreck, and the UK is riding in first class.
