By DebtCafe Debt Consolidation Canada - Canada's national debt refers to the accumulated total of all outstanding government borrowing over time. As a highly developed and welfare-oriented nation, Canada has incurred substantial indebtedness to finance public spending on social programs, infrastructure development, and other essential services. The primary tool used by the Canadian government to raise funds is by issuing bonds, both domestically and internationally. Despite the growing debt burden, Canada has managed to maintain its creditworthiness due to prudent fiscal policies and strong economic indicators.
The debt-to-GDP ratio is often used as a measure of a country's ability to manage its debt load effectively; fortunately, Canada's debt-to-GDP ratio remains relatively low compared to other developed countries.
Sustained economic growth, responsible fiscal management, and strict regulatory frameworks have contributed to Canada's ability to sustain its debt while prioritizing investment in key sectors crucial for long-term prosperity.