Canada's Economy, Explained

For years, Canada has been described as a stable economy. Strong banks. Disciplined policy. Rising household wealth. But underneath that stability, something else has been doing much of the heavy lifting — households. 

Canadian households now carry some of the highest debt burdens in the advanced world, with mortgage debt and housing wealth increasingly shaping not just personal finances, but the broader trajectory of the economy itself. What happens when growth becomes deeply tied to household balance sheets? And what does that mean for productivity, business investment, inequality, and long-term economic resilience? 

In this episode, Marwa Abdou sits down with Stephen Poloz, Special Advisor at Osler, Hoskin & Harcourt LLP, 9th Governor of the Bank of Canada, and author of The Next Age of Uncertainty (2022). Together, they unpack the deeper structural forces behind Canada’s household debt story, from post-financial crisis monetary policy and housing markets to productivity stagnation and the changing nature of financial stability itself. 

This episode also explores why household debt is no longer just a question of financial risk but is increasingly a question about growth itself. Because when economies rely heavily on household leverage to sustain momentum, stability can begin to depend on households continually absorbing more pressure. And eventually, the question is not just whether the system can withstand shocks… but what the system stops being able to build.

Links:
- Stephen Poloz, Special Osler, Hoskin & Harcourt LLP
- The Next Age of Uncertainty: How the World Can Adapt to a Riskier Future by Stephen Poloz
- Stephen S. Poloz, Bank of Canada
- -Stephen S Poloz BoC Speech 2018: Canada's economy and household debt - how big is the problem?

Additional Resources:
- The Hub: “At 103% of GDP, Canadian households have the most debt in the G7”
- OECD Housing Policy Toolkit
- Canadian Bankers Association: Household Borrowing in Canada
- Statistics Canada National Balance Sheet Accounts
- OECD Household Debt
- IMF Canada Financial Sector Assessment Program (FSAP)
- House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent It from Happening Again by Atif Mian & Amir Sufi 

What is Canada's Economy, Explained?

Canada’s Economy, Explained is the official podcast of the Business Data Lab at the Canadian Chamber of Commerce, hosted by Senior Research Director Marwa Abdou.

Whether you’re a business leader, policymaker, or simply curious about the forces shaping our economy, this podcast brings you real-time data, sharp analysis, and conversations that matter. From workforce trends and inflation to trade, innovation, and inclusion, we unpack the stories behind the stats — with leading economists, industry voices, and fresh perspectives.

Timely. Insightful. Unfiltered. This is where Canada’s economy gets explained.