Canada’s economy faces a major risk through the next three years from how debt-laden consumers cope with higher interest rates, according to economists from three of the country’s largest financial institutions.
Risks in the housing market remain, even after the slowdown in sales earlier this year after the government imposed new regulations, according to Frances Donald, head of macroeconomic strategy at Manulife Asset Management. Consumers still have to prove they can be resilient to higher interest rates, Donald said Tuesday at the Bloomberg Canadian Fixed Income Conference in New York.
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by Greg Quinn, Jacqueline Thorpe and Erik Hertzberg