Canadians saw their national wealth drop in the last quarter of 2018. The ‘national wealth’ of a single Canadian fell from $304,085 to $296,933. THE CANADIAN PRESS/Graeme Roy

Canadians are getting poorer and are borrowing money

National wealth dropped by more than two per cent to $11.1 trillion, while personal debt rose

Dropping real estate values and natural resource prices have made Canadians poorer.

According to Statistics Canada, the ‘national wealth’ of a single Canadian fell from $304,085 to $296,933 during the last three months of 2018.

This recorded drop reflects a decline of Canada’s national wealth by 2.2 per cent to $11.1 trillion at the end of the fourth quarter.

RELATED: 46% of Canadians $200 or less away from financial insolvency: poll

“This was primarily due to a 23.5 [per cent] decrease in the value of natural resources,” the agency said in a report. Weaker crude oil prices in the fourth quarter accounted for the drop. “A decline in the value of residential real estate [down $72.5 billion] also contributed to the fourth quarter decrease, as housing prices continued to edge down.”

Canadians are also borrowing more money relative to their incomes.

The household debt service ratio, which measures payments on the principal and interest of credit market debt as a proportion of household disposable income, rose 14.9 per cent in the fourth quarter, as growth in total debt payments outpaced the growth in disposable income.

RELATED: 731,000 Canadians going into debt to buy prescription drugs: UBC

Overall, the average Canadian owes $1.79 in credit market debt for every dollar that they earn towards their disposable household income.

A 2017 OCED study found that Canadians borrow far more than the rest of the world. It found Canadian household debt exceeded the total value of Canada’s per-capita Gross Domestic Product by one per cent. In other words, the Canadian economy does not produce enough wealth to cover the private household debts of Canadians, leaving one per cent unpaid if all GDP were to go towards that single item.

According to the OCED, higher-than-usual real estate prices accounted for the global debt leadership of Canadians. Worse, Canadians will find it more difficult to recover the value of their debt-fueled investment against the backdrop of declining real estate prices.


Like us on Facebook and follow us on Twitter

wolfgang.depner@saanichnews.com

Just Posted

PHOTOS: Powder Blues perform in Mission

Tom Lavin and The Powder Blues packed the Clarke Theatre on Sunday

PHOTOS: Mission dancers shine at annual show

Can Dance Studio celebrated its 30th anniversary with the “United We Dance” end of season showcase

Dash-cam video in trial of accused cop killer shows man with a gun

Footage is shown at trial of Oscar Arfmann, charged with killing Const. John Davidson of Abbotsford

PHOTOS: Dads, car enthusiasts flock to annual show

Mission’s Old Car Sunday in the Park takes place every year on Father’s Day, thousands come out

Parents of Mission murder victim want personal belongings returned

Lisa Dudley’s parents, Rosemarie and Mark Surakka, were at the Mission RCMP detachment Sunday

VIDEO: Trans Mountain expansion project gets green light, again

Prime Minister Justin Trudeau announced the decision in Ottawa on Tuesday afternoon

MPs hear retired B.C. nurse’s petition to change compensation for fatal medical errors

Teri McGrath wants provinces to implement no-fault system for medical errors

Horgan says he’ll still defend B.C. coast after second Trans Mountain approval

Meanwhile, one B.C. First Nation has announced plans for a legal challenge

Metro Vancouver’s air quality could be the worst yet this wildfire season

As wildfire season approached, Metro Vancouver experts predict the air will be an issue for many

Demonstrators on either side of Trans Mountain debate clash in Vancouver

Crowd heard from member of Indigenous-led coalition that hopes to buy 51% of expansion project

Update: Multiple fires along the railway tracks in Pitt Meadows

CP rail has closed tracks while firefighters work

Grieving B.C. mom hopes Facebook message leads to new investigation into son’s Surrey homicide

Criminal Justice Branch didn’t lay charges, concluding no substantial likelihood of murder or manslaughter conviction

B.C.’s measles vaccination program gains traction in May

More than 15,000 doses of the MMR vaccine has been administered across the province

B.C. farmers concerned Agricultural Land Reserve changes choking their livelihood

Dozens voice concerns at special meeting hosted on Vancouver Island

Most Read