Inflation, high interest rates and declining real estate values are worsening wealth inequality in Canada, with younger households bearing the brunt of the financial pain.
The richest 20 of households controlled 67.8 of net worth in the country in the first quarter, while the bottom groups accounted for 2.7, Statistics Canada reported Tuesday in Ottawa.
The least wealthy were affected more by recent economic pressures, seeing their net worth drop by 13.8, more than triple the rate of decrease for the wealthiest.
The gap in the share of disposable income between households in the top and bottom 40 reached 44.7 percentage points, up 0.2 percentage points from a year ago.
Debt-to-income ratios for younger and core working-age groups were also at record highs, and ratio for the youngest households reached 207.5, up 13.4 percentage points from a year ago.
“Persistently high interest rates and inflation are likely to continue to strain households’ ability to make ends meet without going further into debt, especially vulnerable groups, such as those with the lowest income, the least wealth and those of younger age groups,” the statistics agency said.