You are using an older browser version. Please use a supported version for the best MSN experience.

Top Stories

Canada Ranks In The Top 5 For Number Of Ultra-Wealthy People

HuffPost Canada logo HuffPost Canada 2018-09-12 Liz Haq
Canada has one of the world's largest populations of ultra-wealthy people, according to a new report. © Provided by AOL Inc. Canada has one of the world's largest populations of ultra-wealthy people, according to a new report.

Canada is home to one of the largest populations of ultra-wealthy, and the ultra-rich are only getting richer.

A new report from New York-based research firm Wealth-X takes stock of the world's 'Ultra High Net Worth' (UHNW) individuals — people with a net worth above US$30 million — and it found that there were 10,840 ultra-wealthy people in Canada last year. That's up by 13.9 per cent from the previous year.

These individuals boast combined assets of US$1.153 trillion dollars, a figure that signals a 14.8 per cent increase from 2016.

Canada ranks above Hong Kong, Switzerland

Coming in at number 5 globally, Canada has more ultra-rich people than France (10,120), Hong Kong (10,010) and Switzerland (6,400). The United States, Germany, China and Japan are the only countries with more.

The authors of the report credit Canada's "robust" expansion of the ultra-wealthy population to "an improving domestic economy, higher market yields and a stronger currency."

a screenshot of a cell phone: A new report on global ultra-wealth reveals that Canada ranks number 5 for number of individuals with a net worth above US$30 million. © Provided by AOL Inc. A new report on global ultra-wealth reveals that Canada ranks number 5 for number of individuals with a net worth above US$30 million.

The fact that Canada has more high net worth residents than many European countries on the list can be partly attributed to our lack of an inheritance tax, according to one expert.

"Canada doesn't have such a tax, whereas most European countries do," Ricardo Tranjan, senior researcher at the Canadian Centre for Policy Alternatives, told the CBC.

In 2017, there were about 256,000 UHNW individuals with combined assets of $31.5 trillion, a sharp acceleration from the previous year. According to the report, 2017 represented a six-year high in the gains of the uber-rich.

Notably, a record-high share of of the UHNW population in 2017 were women, accounting for 13.7 per cent of the global total.

Rich get richer?

As the number of ultra-wealthy people in Canada increased from the previous year, the wealth possessed by them also rose by 14.8%.

But the picture isn't so rosy across the board.

As Canada's wealthiest accumulated assets, the average net worth of Canadians as a whole actually shrank in 2017.

As StatsCan reported earlier this year, household net worth declined by 0.2 per cent in the first quarter of 2018 — a first since 2015.

StatsCan attributes the numbers to large declines in equity and investment funds and continued weak growth in household residential real estate, a trend that first cropped up in 2017.

Poised to continue

Despite significant geopolitical tensions in 2017, the wealthy got wealthier because of eased volatility in global financial markets and stable exchange rates against the U.S. dollar, according to the authors of the report.

Wealth-X predicts that the trend will continue, with the global population of ultra-rich people rising to 360,390 people by 2022 — an increase of almost 105,000 compared with last year. Their combined wealth is projected to increase to $44.3 trillion.

The firm expects the Asia-Pacific region to see the strongest growth in the near future while North America is positioned for continued underperformance. The report summarizes the trend as "a more balanced distribution of global ultra wealth."

More coverage on wealth inequality:

AdChoices
AdChoices

More from Huffington Post Canada

Loading...

XD Load Error

image beaconimage beaconimage beacon