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13-214-XIE HighlightsNational net worth reached $4.1 trillion by the end of the first quarter 2004, or $127,500 per capita, up from $4.0 trillion in the previous quarter. The advance in national net worth reflects lower net foreign debt and continued growth in national wealth. National net worth advancedNet worth grew 1.4% in the first quarter, at a somewhat slower pace than in the previous quarter. Net foreign debt was again a factor in the growth of national net worth, as what non-residents owe Canadians rose by more than what Canadians owe non-residents. This quarter, the decline in net foreign debt was largely driven by an increase in Canadian direct and portfolio investment abroad, combined with the effect of a depreciating Canadian dollar. National net worth The gain in national wealth (+0.9%) contributed to the advance in national net worth in the first quarter. The growth of non-financial assets was in line with both the pick-up in personal expenditure on durable goods and sustained activity in the residential resale market in the quarter. Household net worth advanced, as debt load also increased furtherThe growth in household net worth was 2.4% with both investment and revaluation of assets contributing to this increase. The demand for funds in the first quarter pushed the household debt to income ratio to a new high. However, overall household leverage was lower, as household debt to net worth declined further in the quarter. Continued low interest rates over the first quarter kept the debt burden (interest paid to disposable income) flat. Corporations' balance sheets improved furtherThe finances of corporations continued to improve. Corporations have been generating a surplus and supplying funds to the economy for 14 consecutive quarters. For non-financial private corporations, leverage decreased further in the first quarter. The debt to equity ratio extended its long-term downward trend. Earnings, combined with strong equity issues (including income trust issues), which partly reflected improved share prices, contributed to the strengthened financial position. Notably, leverage also declined with shares at market value, reflecting the firming of share prices in the quarter. Corporate leverage flattens |
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