Household worth rebounds after recession
Filed Under Main Content · Tagged: Asset Prices, Assets, Borrowings, Canadians, Decline, Economic Downturn, Economics Research, Economist, Household Debt, Jeffries, Liabilities, Low Interest Rates, Net Worth, Rbc, Rebounds, Recession, Residential Real Estate, Rising Stocks, Statistics Canada, Trillion
Times Colonist- Rising stocks and home prices have helped restore almost all of the value Canadians lost in household net worth during the economic downturn.
Household net worth rose 1.3%, or by $74-billion, to $6-trillion, as the growth in the value of assets, particularly equities and residential real estate, exceeded the increase in liabilities, Statistics Canada reported Monday.
“This marks the fourth consecutive quarterly improvement in household net worth and reflects a 96 per cent recovery off the net worth lost during the recent economic downturn,” David Onyett-Jeffries, economist at RBC Economics Research, wrote in an analysis.
“The increase of household net worth continues to repair the cumulative $552-billion decline.”
Household debt has also risen as low interest rates have encouraged Canadians to increase borrowings, but that has led to strengthening in demand and asset prices, particularly housing, said Mr. Onyett-Jeffries…
