The number of millionaires in Canada will increase by more than half in the next five years, a faster growth rate than in other developed countries such as the US, according to a new wealth report by bank giant Credit Suisse.
Canada had 1.3 million millionaires by 2018 and is expected to rise 54 percent to nearly two million by 2023, according to the Global Wealth Report 2018.
Canada ranks in 24 major economies in third place – behind China and Russia, the largest percentage increase in the millionaire population over the next five years. By comparison, the number of millionaires in the US will increase by 18 percent to more than 20 million over the same period.
The Bank used financial and non-financial assets such as homeownership and economic indicators such as GDP (Gross Domestic Product) and inflation from the recent economic forecast of the International Monetary Fund (IMF) to make its predictions.
Wealth in the Housing Market
High property values in Canada will remain an important factor in household wealth in recent years (1
Data released by the Canadian Real Estate Association earlier this week showed that home sales were down by nearly nine Percent fell in September compared to a year ago. But the national average price of a house sold last month rose 0.2 percent to just under $ 487,000 over the previous year.
Another reason for the predicted increase in millionaires in Canada is that currently many people are rich just under $ 1 million US, Davies said.
" The predicted increase in wealth in the five years would bring anyone with a fortune more than three times the average to the millionaire group when it happens today," Davies said.
According to the report, more than 46 percent of Canadians have assets ranging from $ 100,000 to $ 1 million.
He added that the figures for millionaires are expressed in US dollars, and the global study used the IMF's forecast exchange rate, which would see the Loonie rise by 11.4 percent to $ 86.3 by 2023. Cents will be expected.
"This roughly matches the expected increase in average wealth in Canada compared to what we would see if the calculation were made in Canadian dollars," he said.
Even with growing wealth among Canadians, Credit Suisse warns that the economy is facing some challenges, and its outlook is "somewhat uncertain".
"No permit granted for new oil pipelines Oil prices in the Midwestern United States have resulted in the price of oil from Canada's tar sands being well below the world market price," the report said.
"The trade distortions have become serious timber, steel and aluminum, although a preliminary free trade agreement with Canada and Mexico has been reached for the replacement of NAFTA."
It had been widely expected that the US and Canada were closed in June and June However, this has not yet happened, as a new trade agreement was agreed before 1 October.
Canada vs. USA
The wealth report also gave an overview of how wealth has grown for Canadians in the US 18 years from 2000 to today.
The wealth per adult in Canada grew at an average rate of 5.4 percent, with a slight decline during the global financial crisis in 2008-09, similar to other developed countries.
Meanwhile, average wealth per adult in 2018 was $ 288,260, nearly 30% lower than in the US
However, wealth in the country was more evenly distributed compared to the US. The median wealth per adult in Canada was $ 106,340, compared to $ 61,670 the US
Canada also had a lower percentage of people with less than $ 10,000 and a greater percentage of those with $ 100,000 compared to the US USA
In total, the country's 1.3 million millionaires made up three percent of the world's population from top-percent owners of wealth.