{"id":5771,"date":"2021-01-14T18:26:40","date_gmt":"2021-01-14T23:26:40","guid":{"rendered":"https:\/\/simple-credit.ca\/epargne-et-endettement-les-quebecois-font-mieux-que-les-canadiens"},"modified":"2021-06-14T12:28:40","modified_gmt":"2021-06-14T16:28:40","slug":"savings-and-debt-quebecers-are-doing-better-than-other-canadians","status":"publish","type":"post","link":"https:\/\/simple-credit.ca\/en\/savings-and-debt-quebecers-are-doing-better-than-other-canadians","title":{"rendered":"Savings and Debt: Quebecers Are Doing Better Than Other Canadians"},"content":{"rendered":"\n
\"\"
PHOTO BY FRAN\u00c7OIS ROY, LA PRESSE ARCHIVES
Over the past three years, the savings rate of Quebecers has increased dramatically, and is now at 8%.<\/figcaption><\/figure><\/div>\n\n\n\n

Over the past three years, the savings rate of Quebecers has increased dramatically, and is now at 8%. It took the opposite path in the rest of Canada, going from 5.1% to 1.8% in the span of five years, according to a recent study by Desjardins Economic Studies.<\/p>\n\n\n\n

\"Marc<\/p>\n\n\n\n

MARC TISON
LA PRESSE<\/p>\n\n\n\n

At the same time, the indebtedness rate of Quebecers stopped its rise, stabilizing for three years at around 155%. Ontario\u2019s continued to climb, reaching 188%. \u201cIt is still major, because a savings rate of around 8% in Quebec, we would not have expected it a few years ago,\u201d comments senior economist H\u00e9l\u00e8ne B\u00e9gin. \u201cI remember a time when the savings rate was less than 1%.\u201d The explanation lies mainly in the tightening of the job market in Quebec, according to the economist. Explanations:<\/p>\n\n\n\n

Decrease in the unemployment rate<\/h3>\n\n\n\n

The strong expansion of the Quebec economy over the past three years has resulted in a drop in the unemployment rate, which even remained below 5% for much of 2019.<\/p>\n\n\n\n

An older population<\/h3>\n\n\n\n

Accelerated aging in Quebec compared to Canada has also increased the number of available positions.<\/p>\n\n\n\n

Increased remuneration<\/h3>\n\n\n\n

In response, the remuneration of Quebec workers has grown for three years by about 3% per year. The increase had been between 1% and 2% in previous years.<\/p>\n\n\n\n

Increase in disposable income<\/h3>\n\n\n\n

With the added effect of federal and provincial tax breaks, after-tax disposable income has increased by almost 5% per year over the past three years<\/p>\n\n\n\n

More money in pockets<\/h3>\n\n\n\n

As a result, Quebec households, without reducing their consumer spending, were able to save more. In 2019, they devoted about 8% of their after-tax income to saving. In 2018, the savings rate was negative in 7 out of 10 provinces. Only Alberta was just ahead of Quebec, after also experiencing a dramatic drop in its savings rate.<\/p>\n\n\n\n

Two curves of the same slope<\/h3>\n\n\n\n

For the past three years, Quebecers\u2019 after-tax income has maintained a growth similar to that of property prices, which has allowed them to stabilize or even slightly reduce their indebtedness rate. In 2019, their debts were around 155% of their after-tax income, compared to about 175% in the rest of Canada.<\/p>\n\n\n\n

The weight of the mortgage<\/h3>\n\n\n\n

Since mortgages account for 75% of all household debt, property prices largely explain the difference between the indebtedness rate of Quebecers and other Canadians. In November 2019, the average price was $331,525 in Quebec, $628,234 in Ontario, and $526,303 in Canada. Quebec households reserve 28% of their disposable income for mortgages, compared to 35% in Canada and 40% in Ontario, which leaves less room for savings than in Quebec, noted H\u00e9l\u00e8ne B\u00e9gin.<\/p>\n","protected":false},"excerpt":{"rendered":"

Over the past three years, the savings rate of Quebecers has increased dramatically, and is now at 8%. It took the opposite path in the rest of Canada, going from 5.1% to 1.8% in the span of five years, according to a recent study by Desjardins Economic Studies. MARC TISONLA PRESSE At the same time, […]<\/p>\n","protected":false},"author":1,"featured_media":5772,"comment_status":"open","ping_status":"open","sticky":false,"template":"redux-templates_full_width","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[66],"tags":[],"class_list":["post-5771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budgeting"],"_links":{"self":[{"href":"https:\/\/simple-credit.ca\/en\/wp-json\/wp\/v2\/posts\/5771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/simple-credit.ca\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/simple-credit.ca\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/simple-credit.ca\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/simple-credit.ca\/en\/wp-json\/wp\/v2\/comments?post=5771"}],"version-history":[{"count":1,"href":"https:\/\/simple-credit.ca\/en\/wp-json\/wp\/v2\/posts\/5771\/revisions"}],"predecessor-version":[{"id":5774,"href":"https:\/\/simple-credit.ca\/en\/wp-json\/wp\/v2\/posts\/5771\/revisions\/5774"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/simple-credit.ca\/en\/wp-json\/wp\/v2\/media\/5772"}],"wp:attachment":[{"href":"https:\/\/simple-credit.ca\/en\/wp-json\/wp\/v2\/media?parent=5771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/simple-credit.ca\/en\/wp-json\/wp\/v2\/categories?post=5771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/simple-credit.ca\/en\/wp-json\/wp\/v2\/tags?post=5771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}