The value of Canada's assets fell at the fastest pace since the 2008 financial crisis amid declining prices for real estate and natural resources.
National net worth dropped 3.3 per cent to $17.2 trillion (US$12.6 trillion) in the three months between July and September, Statistics Canada reported Monday.
The value of natural resources in the country fell 13.4 per cent to $2.3 trillion as global commodity prices including energy and metals fell from second-quarter highs. The total value of residential real estate in Canada fell for the second consecutive quarter, down 3.4 per cent to $8.4 trillion.
The data highlight the rate at which Canada's non-financial assets are being eroded by slowing global demand and rising borrowing costs. Declining resource and home values will add to headwinds for the economy in 2023, when economists forecast growth will stall. Some are projecting a recession.
At the household level, Canadians' incomes continued to lag increases in debt, with the debt-to-income ratio rising to 183.3 per cent in the third quarter from 182.6 per cent previously. Rising mortgage costs pushed the household debt service ratio to 13.97 per cent.
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