The number of millionaires in Canada will jump over half in the next five years, a faster growth than other…
The number of millionaires in Canada will jump over half in the next five years, a faster growth than other developed countries like the United States, according to a new wealth report from bank giant Credit Suisse.
Canada had 1.3 million millionaires in 2018 and is expected to increase by 54 percent to nearly two million people in 2023, says the Global Wealth Report 2018.
Canada ranked third behind China and Russia – of 24 major economies when it comes to the largest percentage profit in the millions of people over the next five years. By comparison, the number of millionaires in the United States will grow 18 percent to more than 20 million individuals over the same period of time.
The Bank used financial and non-financial assets of wealth as resident and economic indicators such as GDP gross domestic product) and inflation from the recent economic outlook database for the IMF to create its forecasts.
High real estate values will continue to be an important driving force for household wealth in Canada, despite recently One of the assumptions behind the increase in the number of millionaires is that Canadians’ housing wealth continues to rise ̵
1; no collapse in that market, says Jim Davies , a writer of study and economics professor at Western University.
Data released by the Canadian Property Association earlier this week showed that home sales declined almost nine percent in September, compared to a year ago. But the national average price of a home sold last month increased 0.2 percent to just over 487,000 dollars a year ago.
Another reason for the large projected increase of millionaires in Canada is that there are currently many people with wealth just under $ 1 million, Davies said.
” The expected increase in wealth over the five years would take everyone wealthy more than three times the average now in the millionaire group if it happened today,” says Davies.
More than 46 percent of Canadians have wealth between $ 100,000 and $ 1 million, according to the report.
He also added that the figures for millionaires were in US dollars, and the global study used the forecasted exchange rate for the IMF, which expects wage increases 11.4 percent to 86.3 cent in the US before 2023.
“It doubles about the expected growth of average wealth in Canada, compared to what we would see if the calculation was made in Canadian dollars,” he said.
Credit Suisse also warns that the economy is facing some challenges, and its outlook is “somewhat uncertain”, with increasing wealth among Canadians.
“Acceptance has not been obtained for new oil pipelines, which contributes to an oil in the United States Midwest. This has forced the price of oil from Canada’s tar sands far below world prices,” the report says.
“Trade war has become serious, with the United States continuing criminal customs duties on Canadian timber, steel and aluminum, despite having reached a preliminary free trade agreement with Canada and Mexico to replace NAFTA. “
It was widely expected that the metal tariffs introduced by the United States and Canada in June and July would be lifted after a new trade agreement was approved before October 1 last day, but it has not yet happened.
Canadian per capita wealth rose on average by 5.4 percent, with a small dip in the global financial crisis 2008- 09, similar to other developed countries.
At the same time, average wealth per adult in 2018 was $ 288,260, almost 30 percent lower than in the United States.
However, wealth in the country was more evenly distributed over the US. The median wealth per adult in Canada was $ 106,340, compared to $ 61,670 US
Canada also had both a smaller proportion of people with less than $ 10,000 and a larger proportion of them with over $ 100,000 compared to the United States
Overall, 1.3 million million million people accounted for three percent of the world’s highest one percent wealth holders.