Household debt payments will rise in 2019 The average “ Annual increase in debt service obligations per household household will end up in Canada, in dollars with $1,300 more in its ,200 pocket ,000 978 ” 00 790 00 504 00 200 75 0 20 20 20 20 * Including debt-free households. Source: Statistics Canada, RBC Economic Research * Including debt-free households. | Source: Statistics Canada, RBC Economics Research Consumers will pay fewer visits to the car lot Even before being pinched by rising interest rates, fewer population aged 16 and over. Auto sales in Canada peak- Canadians were buying autos, in part reflecting a potent ed in 2017. That was a year after peak-vehicle sales in the combination of technology and demographics. For U.S., but the decline in Canada has been sharper. Now, those living in urban areas there’s been an explosion add in the impact of higher interest rates, which will eat in ride-sharing and car-sharing services, like Uber and into household discretionary income and force some ZipCar, while research has found the number of young consumers to decide just what they can live without. people with driver’s licenses has been waning. Another Will a new set of wheels be near the top of that list? way to look at this is auto sales adjusted for Canada’s Peak auto sales in Canada and the U.S. is behind us Unit auto sales per 1000 population age 16+ 85 80 S Canada 75 ecast For 70 65 60 55 50 45 40 10 12 14 16 18 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Source: BEA, Statistics Canada, RBC Economics Research Source: BEA, Statistics Canada, RBC Economics Research RBC Economics Research | Navigating 2019 - 9 big insights for the year ahead | January 2019 8