Canadian nonfinancial corporate debt has reached new highs, spurred by low interest rates and the desire for firms to hold higher levels of cash. Anthony Okolie speaks with James Orlando, Senior Economist, TD Bank, about the industry’s ability to meet its debt obligations.
Canadian Corporate Debt: Navigating The Risks Amidst The Economic Recovery
Summary
- James Orlando: Canadian nonfinancial corporate debt has reached new highs, accounting for 81.5% of nominal GDP.
- Debt is highly concentrated in specific industries, including real estate and construction.
- Small businesses that operate in food & accommodation are vulnerable to the withdrawal of government support programs.
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