California USA vs. Ontario Canada - Which State (Province) Is In Worse Shape? Canadian Banks vs. US Banks Comparison

Record debt levels in Ontario may translate into higher borrowing costs for Canada’s largest province relative to other regional governments.

The province’s net debt will rise to C$220 billion ($216 billion) in 2010-11, or a record 37 percent of gross domestic product, according to budget documents released yesterday. That’s almost twice as high as the debt-to-GDP ratio in British Columbia.

The province, home to 13.1 million people who account for more than a third of Canada’s economy, outlined plans to balance its budget in eight years. Standard & Poor’s last year cut the province’s credit rating on concern over escalating debt as the global recession buffeted the manufacturing industry, which accounts for almost a fifth of output. (more)