US consumers have worked off a good chunk of their debt since the credit bubble blew up. On average, they owe less than 140% of disposable income now, down from 165% in 2008.
But Canadian households just kept going through the crunch, as Canada’s economy largely shrugged it off. But record household debt means there is little scope for consumers to bolster overall growth if money from exporting commodities – such as oil – falls away.