Canada is punching above its weight for wealth creation

Canada is punching above its weight for wealth creation

Canada is punching above its weight for wealth creation Canada has 1.1 million millionaires, 3% of the top 1% of global wealth holders, despite having just 0.6% of the world’s population.

The number of people in Canada with 7-figure fortunes has increased by 110,000 in the year from 2016-17 putting the country firmly in the top 10 for creating millionaires.

Figures from a global wealth report from Credit Suisse show that there are 36 million people globally who are worth at least U$1 million, more than 2 million of those joined the 7-figure-set in the past year.

The US leads the rankings with more than a million new millionaires, making a total of 15.4 million. Germany, Australia, France, China and Italy all sit above Canada but (except Australia) all have far higher populations. The UK and Japan lost millionaires in the year.

There are also an estimated 148,200 adults who are classed as high-net- worth-individuals (HNWIs), with wealth of at least U$50 million; North America dominates in this group with 51%.

The US has the highest number of HNWIs at 72,000 but Canada again ranks well with 3,000 – the same as Australia and France.

Steady growth for Canadian wealth
Credit Suisse says that Canada’s wealth per adult grew at a rate of 5.3% from 2000-2017 when measured in US dollars and 4.4% when measured in Canadian dollars.

Despite the shock of lower oil prices, rising home values helped Canadian wealth per adult rise by 6.8% (in USD) and 6.7% (in CAD) from 2016-17.

Although wealth per adult is 33% lower in Canada (U$259,271) than the US, Canada has a lower share of people worth less than $100K and a higher share worth more than $100K.

Globally growth is picking up pace
Global growth is up 27% from a decade ago but the data shows that millennials are lagging in generating wealth due to tighter mortgage rules, higher house prices, lower income equality and mobility.

However, the number of billionaires under 30 has increased.

“A decade since the start of the global financial crisis, we see a significant increase in wealth across all regions of the world,” said Urs Rohner, Chairman of the Credit Suisse Research Institute and Chairman of the Board of Directors of Credit Suisse Group.

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