Report: Income inequality continues to grow in Canada

Posted Jun 19, 2013 by Jordan Howell
The fortunes of the world’s richest individuals continued to grow last year thanks to booming stock markets and resurgent property values.
Owners of Ferrari cars in Toronto  Ontario  often congregate in exclusive Yorkville Village
Owners of Ferrari cars in Toronto, Ontario, often congregate in exclusive Yorkville Village
Digital Journal
The new figures compiled by Capgemini and RBC Wealth Management and published in the annual World Wealth Report show that the number of high net worth individuals, or HNWIs, expanded to over 12 million worldwide.
According to the World Wealth Report, HNWIs are defined as those individuals with a net worth exceeding US$1 million.
“High net worth investors benefited from an environment of overall reduced risk, despite challenging economic conditions, and this contributed to strong wealth growth,” said George Lewis of RBC Wealth Management.
The report also found that the net worth of the world’s wealthiest individuals increased by 10 per cent in 2012 to an astonishing US$46.2 trillion.
Canada’s wealthy have fared well during the recovery, with its number of HNWIs rising 6.5 per cent in 2012 to a record 298,000 people. The ultra-rich experienced an even greater increase of 11 per cent to 4,500 people.
Other news from the report:
• Asia surpassed North America for the first time, with the number of HNWIs expanding 1.6% to 3.37 million
• HNWIs in North America continue to hold the record for the most wealth at US$11.4 trillion compared to US$10.7 trillion in the Asia-Pacific region
• South Korea leaped past India for the 12th largest HNWI population
• The top three (U.S, Japan and Germany) retained 53.3% of total HNWIs, up slightly from 53.1% in 2010
• Of the top twelve countries by population, Brazil saw the greatest percentage rise (6.2%) in the number of HNWIs
This trend largely defines the state of post-recession household incomes, with a greater number of wealthy individuals continuing to grow their fortunes as they recover from recession, whereas the majority of the population continues to struggle with stagnant wages.
All told, one million people joined the millionaires club last year with two million more HNWIs now than before the 2008 crash.
View the infographic here.