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Dear John,
You may have noticed that the federal government has been very quick recently to point out that Canada’s net debt relative to the size of the economy is lowest in the G7.
But did you know that relative debt position is much worse than the federal government suggests when a larger group of advanced countries are included? And it gets even worse when total debt is measured instead of debt after adjusting for financial assets.
A new Fraser Institute study out today shows that Canada's "lowest debt" rank falls from 1st to 11th when the group of comparison countries is expanded to the 29 advanced countries, and ranks 25th out of 29 countries for its total (gross) debt as a share of the economy.
In other words, Canada’s total debt relative to GDP is the 5th highest amongst the industrialized world.
Learn more about how the federal government distorts these numbers by checking out the full study here – and be sure to spread it far and wide to warn others!
Stay safe,
Niels Veldhuis
President
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