Statistics Canada
www.statcan.gc.ca
Common menu bar links
National balance sheet accounts
National net worth reached $4.8 trillion by the end of the third quarter, or $146,700 per person. The gain in net worth resulted from an increase in national wealth (economy-wide non-financial assets) as well as a sharp drop in net foreign debt. National net worth grew 2.8% in the third quarter, the largest increase in more than two years.
National wealth advanced 2.0% in the third quarter, matching the second quarter growth. The increase in the market value of residential real estate continued to be the major contributor to increases in national wealth. Non-residential assets also contributed to the gains in national wealth. In particular, strengthened business investment was reflected in the acceleration in the growth of non-residential structures and machinery and equipment.
Note to readersThe national balance sheet accounts are statements of the balance sheets of all of the various sectors of the economy. They consist of the non-financial assets owned in the various sectors of the economy and of financial claims outstanding. National wealth is the sum of non-financial assets, produced assets, land surrounding structures and agricultural land, in all sectors of the economy. National net worth is national wealth less net foreign liabilities (i.e., what is owed to non-residents less what non-residents owe to Canadians). Alternatively, it is the sum of the net worth of persons, corporations and governments. National saving is the sum of saving of persons, corporations and governments. National saving and investment contribute to change in national net worth. The revaluation of assets and liabilities is also responsible for changes in national net worth. The causes of revaluation include changes in share prices, interest rates, exchange rates and loan allowances. Quarterly series, both book and market value, run from the first quarter of 1990; market value estimates have been available since June 2004. For more information on the market value estimates, consult Balance sheet estimates at market value. |
Growth in household net worth accelerates
Gains in household net worth rebounded in the third quarter following slower growth in the second quarter. Though advancing at a slower pace, the value of residential real estate was the largest contributor to the increase in household net worth. The slower pace was mainly a reflection of reduced investment activity in the resale market combined with higher new housing prices. While new housing price increases slowed from the second quarter, they continued to materially impact the value of residential real estate. Increases in the value of pension assets as well as corporate shares and mutual funds also contributed significantly to third quarter gains in household net worth.
This increase in household net worth was accompanied by a proportionally larger increase in household debt leading to a rise in household debt to net worth ratio. Households had 18 cents of debt for every dollar of net worth at the end of the third quarter. Debt service charges remained relatively stable at about 8% of personal disposable income.
Government debt continues to fall
Government net debt (total liabilities less total financial assets of all levels of government combined) declined significantly in the third quarter as it did in the second quarter, as the government sector continued to be in surplus. Net government debt (at book value) as a percentage of gross domestic product has continued its steady decline and is approaching 40%, a level not seen in decades.
Net foreign debt declines sharply
Growth in Canadian foreign assets exceeded the growth in Canadian liabilities to non-residents, more than reversing the change in position of the previous quarter during which the net Canadian international investment position had deteriorated. The pronounced decline in Canada's net foreign debt provided a boost to the growth in national net worth in the third quarter.
Corporate leverage eases
While growth in credit market debt of non-financial corporations increased in the third quarter, growth in equity was greater, and the leverage ratio (at book value) continued its downward trend. Corporations continued to generate surplus funds on a net basis and remain a lender to the rest of the economy, a trend which began in 2000.
Available on CANSIM: tables 378-0003 to 378-0010.
Definitions, data sources and methods: survey number 1806.
The third quarter 2006 issue of National Balance Sheet Accounts, Quarterly Estimates, Vol. 4, no. 3 (13-214-XWE, free) is now available from the Publications module of our website.
The third quarter 2006 issue of Canadian Economic Accounts Quarterly Review, Vol. 5, no. 3 (13-010-XWE, free), is now available online. From the Publications module of our website under Free Internet publications, choose National accounts.
At 8:30 a.m. on release day, the complete national balance sheet accounts can be obtained on computer diskette. The diskettes (13-214-DDB, $321/$1,284) can also be purchased at a lower cost seven business days after the official release date (13-214-XDB, $65/$257). To purchase any of these products, contact the client services officer (613-951-3810; iead-info-dcrd@statcan.gc.ca), Income and Expenditure Accounts Division.
For more information, or to enquire about the concepts, methods or data quality of this release, contact the information officer (613-951-3640), Income and Expenditure Accounts Division.
Table(s).