Rising insolvency readings in Canada raise red flags — sort of – BNNBloomberg.ca
The number of insolvencies filed in the first September of 2019 has dramatically increased despite a healthy economy. With unemployment as well as interest rates dropping, there is some concern about the rise in numbers of Canadian households that are not able to pay off their debts. Experts however, have pointed out that this rise in insolvency numbers may not be so worrisome as population growth and the decrease in share of insolvencies per 1 billion dollars of household income.
“Normally there’s a story you can tell, like there’s some underlying weakness that shows up with a bit of a lag in personal bankruptcies and insolvencies.It’s just hard to see that now. It’s perplexing.”