How have Canada’s gross and net government debt levels changed since 2014 compared with other G7 countries?

1. Gross debt: Canada moved up with the pack, not alone at the top

Measured as gross general-government debt, Canada’s stock of liabilities increased through the 2014–2023 period much as it did across the G7 after multiple shocks (slow growth post‑2014, tax and spending choices, and especially the pandemic), and IMF-based charts compiled by Statista show rising gross debt across the group from 2014 to 2023 with several G7 members already above 100% of GDP (Japan, Italy, the United States rising) while Canada’s gross debt climbed but did not singularly lead the pack ^{[1] [4]}.

2. Net debt: Canada’s asset cushion changes the story

When analysts deduct government financial assets to produce net debt, Canada’s position improves markedly relative to peers — IMF-derived net‑debt charts reproduced by Statista and commentary from Canadian dealers note that Canada’s sizable financial-asset holdings give it “fiscal freedom” compared with many G7 peers once net measures are used ^{[2] [3]}. That asset-adjusted view is why some Canadian analysts and credit observers argue Canada retains more fiscal flexibility despite higher gross liabilities ^[3].

3. Conflicting narratives: “deteriorated fastest” versus “relative fiscal freedom”

Think of the debate as two lenses: authors like the Fraser Institute highlight that Canada experienced among the largest increases in spending and overall debt burden in the G7 from 2014–2024, arguing Canada’s finances “deteriorated faster than any other G7 country” on some measures ^[5]. By contrast, market/commentary pieces that lean on IMF net‑debt figures stress Canada’s asset stock and argue Canada has leading fiscal headroom in the G7 — both claims are true under different accounting choices and time cut-offs ^{[3] [5]}.

4. Why definitions and timing matter for comparisons

Gross debt counts all liabilities; net debt subtracts financial assets — OECD explicitly defines general government debt as gross debt relative to GDP, and different publications and rating agencies choose the metric that suits their analytical lens ^[6]. Projections and recent higher-for-longer interest rates also complicate comparisons: rating agencies warn that higher rates raise debt-servicing costs even without new borrowing, and IMF projections used in VisualCapitalist forecasts show divergent future paths for G7 gross debt through 2029, with the U.S. projected to add the most gross debt ^{[6] [7] [8]}.

5. What the data imply for Canada versus peers

Empirically, Canada’s gross debt rose from 2014 to the post‑pandemic period similar to other advanced economies (Statista/IMF series), but Canada’s net‑debt ratio is lower relative to several G7 peers because of government financial assets — a distinction that leads to opposing policy messages: critics point to the rapid growth in gross liabilities and spending (Fraser Institute), while others, citing IMF-based net measures, argue Canada’s balance sheet is stronger than it looks on gross terms, affording more fiscal room ^{[1] [2] [3] [5]}.

6. Caveats, agendas and what to watch next

Readers should note the implicit agendas: think tanks focused on fiscal restraint emphasize government spending increases and gross‑debt metrics ^[5], whereas market analysts and some central bank/NBF commentaries foreground net positions and asset buffers to highlight fiscal flexibility ^[3]; independent agencies like Scope warn broadly that higher interest rates and weakened fiscal rules across the G7 raise sovereign risk irrespective of current gross/net buckets ^[8]. Definitive judgment requires choosing consistent metrics (gross vs net), checking data vintage and whether sub‑national liabilities or assets are included — the sources supplied do not provide a single harmonized table for 2014–2024 for every G7 country, so interpretations will depend on metric choice ^{[1] [6] [2]}.