Politics, Religion & Controversial

Wow...Canada debt to gdp has been in decline since 2016 and is lower than Singapore!

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  • Dec 10th, 2018 9:31 pm
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Deal Addict
Mar 13, 2018
1368 posts
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Wow...Canada debt to gdp has been in decline since 2016 and is lower than Singapore!

It's amazing how debt to gdp ballooned under previous govt from 2008-2015 and decline since 2016

Canada's debt to gdp is at 89.6% currently down from 2015/2016 peak of 92%

But I'm surprised Singapore with being how small and extremely wealthy is up there . Us is running trillion dollars deficit now and as deficit to GDP we're about 1/3 of them

https://tradingeconomics.com/canada/gov ... ebt-to-gdp

Amongst G20

Japan 253%
Italy 131.8%
Singapore 110.6%
US 105.4%
Spain 98.3%
France 97%
Canada 89.6%

Lowest is surprisingly Russia at 12.6% (tied with Saudi)
32 replies
Deal Fanatic
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Oct 23, 2003
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Gboard2 wrote:
Nov 29th, 2018 3:56 pm
It's amazing how debt to gdp ballooned under previous govt from 2008-2015 and decline since 2016
is it?

when did the 2008 financial crash happen?
when did the 2014 oil crash happen?

lol
Newbie
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Nov 10, 2018
21 posts
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Not the complete picture. Ratio doesn't include provincial debt.
Penalty Box
Aug 26, 2017
443 posts
89 upvotes
Gboard2 wrote:
Nov 29th, 2018 3:56 pm
It's amazing how debt to gdp ballooned under previous govt from 2008-2015 and decline since 2016

Canada's debt to gdp is at 89.6% currently down from 2015/2016 peak of 92%

But I'm surprised Singapore with being how small and extremely wealthy is up there . Us is running trillion dollars deficit now and as deficit to GDP we're about 1/3 of them

https://tradingeconomics.com/canada/gov ... ebt-to-gdp

Amongst G20

Japan 253%
Italy 131.8%
Singapore 110.6%
US 105.4%
Spain 98.3%
France 97%
Canada 89.6%

Lowest is surprisingly Russia at 12.6% (tied with Saudi)
Big deal... Germany has 64.1% ratio
Make the Trudeau drama teacher again!
Deal Addict
Sep 23, 2009
4243 posts
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Yes.

Let's borrow our way to prosperity.

It worked very well in Michigan.

It definitely worked in the long run.
Member
Jan 12, 2017
308 posts
95 upvotes
Does that include crazy Provincial and Municipal debt? Singapore may not be a good direct comparison.
Gboard2 wrote:
Nov 29th, 2018 3:56 pm
It's amazing how debt to gdp ballooned under previous govt from 2008-2015 and decline since 2016

Canada's debt to gdp is at 89.6% currently down from 2015/2016 peak of 92%

But I'm surprised Singapore with being how small and extremely wealthy is up there . Us is running trillion dollars deficit now and as deficit to GDP we're about 1/3 of them

https://tradingeconomics.com/canada/gov ... ebt-to-gdp

Amongst G20

Japan 253%
Italy 131.8%
Singapore 110.6%
US 105.4%
Spain 98.3%
France 97%
Canada 89.6%

Lowest is surprisingly Russia at 12.6% (tied with Saudi)
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renoldman wrote:
Nov 29th, 2018 7:54 pm
Yes.

Let's borrow our way to prosperity.

It worked very well in Michigan.

It definitely worked in the long run.
Dutch disease...except automotive instead of petrol. They should have invested like the Norwegians.
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Deal Fanatic
Nov 24, 2013
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Kingston, ON
NinoSavatte wrote:
Nov 29th, 2018 4:58 pm
Not the complete picture. Ratio doesn't include provincial debt.
Wrong. An "89.6%" figure absolutely includes provincial, and possibly municipal debt. The federal number alone is ~31% and the lowest in the G7:

Image
Deal Addict
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Jan 16, 2011
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Mike15 wrote:
Nov 30th, 2018 10:27 am
Wrong. An "89.6%" figure absolutely includes provincial, and possibly municipal debt. The federal number alone is ~31% and the lowest in the G7:

Image
Federal government cut it in half in 20 years?!? I must be missing something because that seems nutz.
Member
May 16, 2017
372 posts
408 upvotes
As a % of GDP, yes, the Federal Debt has decreased consistently since a peak in around 1997 ($562.9B or 63.% of GDP = $811.B adjusted to 2017 inflation) and as of the end of 2017 this was $616B debt or 31% of GDP.

You can credit Paul Martin, the Finance Minister at the time for a reversal of the trend. Although, you can also blame him for doing this by offloading debt to the Provinces via massive cuts to transfer payments and other spending cuts that previously offset what otherwise would be Provincial expenditures. However, it forced a nation-wide adjustment to spending and lead to only the 3rd balanced federal budget in 36 years in 1998.
Last edited by robsaw on Nov 30th, 2018 12:26 pm, edited 1 time in total.
Newbie
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Nov 10, 2018
21 posts
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Mike15 wrote:
Nov 30th, 2018 10:27 am
Wrong. An "89.6%" figure absolutely includes provincial, and possibly municipal debt. The federal number alone is ~31% and the lowest in the G7:

Image
Dug deeper...chart looks legit. Debt/GDP number is blended federal/provincial. I stand corrected. And a tad surprised on the federal front. Upvote to you, good sir.
Deal Addict
May 12, 2014
1455 posts
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Montreal
kr0zet wrote:
Nov 30th, 2018 10:30 am
Federal government cut it in half in 20 years?!? I must be missing something because that seems nutz.
The debt was NOT cut in half. The ratio was. This was done through good budgets (bravo Martin and Flaherty) but also through GDP growth.

Problem is, now we're running big deficits even though (1) the Liberals INCREASED taxes on the rich, and (2) we're NOT in a recession.

Even by Keynesian theory, we should have been cutting taxes now, running a surplus, and paying down debt for a rainy day.

So what will happen when the next recession comes?
Newbie
Aug 3, 2017
15 posts
3 upvotes
Can someone to spell this out for me, particularly in a “personal” finance forum. Why should Joe Average and Soccer Mom care about debt-to-gdp ratio, how does this help them? We have debt, which is a defined figure, over a made up number. Let’s face it, gdp is a made up number, I do not believe there is a unified agreed upon formula for gdp.

The amount of money we owe divided by the number widgets we make is 90% ---- ok.
Greece got in trouble when they were around 180%. But by the chart above Japan is over 250% and they are not Greece, they are not in trouble (well not yet it anyway). Canada at 90% so what? Will less tax dollars go to paying off the debt? How about the annual interest on the debt. Will it take fewer decades to pay off debt? Will a lower debt-to-gdp ratio help us when interest rate rise? Because more gdp doesn’t necessarily mean more income for the CRA, and if it did, we still have to pay more interest.
And back to the “personal”. Does Joe get a raise with a lower debt-to-gdp ratio? Does Soccer Mom get a better rate on her mortgage?
Why should we care about this made up ratio?
Deal Addict
Oct 6, 2015
1351 posts
717 upvotes
For all the griping over the past few decades, Canada has been run fairly well fiscally. If anything, as global interest rates rise, it will be comparatively 'party time' in Canada compared to other countries that are absolutely pickled in debt.

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