Canadians see their net worth rise 2.2 per cent in the fourth quarter

Statistics Canada says the net worth of Canadians increased 2.2 per cent in the last three months of 2010 as a rebound in stock markets continued to rebuild household balance sheets.

After recovering from the recession in the first half of the year, household net worth advanced by three per cent in the third quarter and again in the fourth to reach $181,700 per capita.

Still, the five to six per cent annual rate of growth is below the near 10 per cent annual gains that became the norm before the recession.

Personal gains were boosted by rising home values as well as a nine per cent increase in the Toronto Stock Exchange index, which enriched stock portfolios along with mutual and pension funds.

Collectively, the net worth of Canadians totalled $6.2 trillion at the end of 2010.

Meanwhile, Statistics Canada noted that Canadians continue to take on greater debt, although the pace is slowing, with the household debt to disposable income ratio remaining virtually unchanged at a record 149 per cent at the end of the year.

However, once interest rates start rising as expected in the latter part of this year, servicing debt will become more difficult, cautioned economist Diana Petramala of the TD Bank.

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