'Households have recently faced a perfect storm of economic pressures, with asset values declining amid turmoil in markets, rising rates and high inflation,' it said From m_zadikian
"Reductions in wealth for the least wealthy were largely driven by higher-than-average increases in debt, while younger households were affected more by declining real estate values, as these households tend to depend more on housing as a source of wealth than older households," StatCan said.
Many Canadian households built up excess savings through the pandemic amid restrictions on travel and entertainment, rising home prices and generous government support programs. Since then, the economic environment has changed drastically. Inflation and debt servicing costs have soared, home values have dropped and markets have taken a downturn, all taking a toll on Canadians' bank accounts and their expectations about what lies ahead for the economy.
The latest Bloomberg Nanos Canadian Consumer Confidence Index slid to levels generally seen during times of economic crisis. The measure of consumer sentiment found half of respondents think the economy is going to weaken by the end of the year.In a separate release Monday, StatCan says "in the second quarter, income inequality reached an all-time high since the beginning of the COVID-19 pandemic." Its measure of inequality widened 0.2 percentage points to 46.3 per cent.
Lower-earning families saw their average disposable income fall 5.7 per cent to $6,415, as pandemic-related government support programs ended, offsetting any wage gains earned due to the tight labour market. Meanwhile, Canada's top 20 per cent richest households had average disposable incomes of $46,805, according to StatCan, owing to salary increases, self-employment income and investment returns.
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