Canada Enjoys Healthy Net Worth

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    Canada’s net worth was at a healthy 648 per cent of gross domestic product in the final quarter of 2012, says a report from Capital Economics, an independent economic research firm. By contrast, U.S. net worth was a more modest 550 per cent in the same period. Canadians’ wealth advantage is built mostly on the big run-up in housing prices in recent years, and that’s a very shaky foundation, it says. The firm has been forecasting for some time now an overall reduction of 25 per cent in Canadian house prices to bring the ratio of house prices to per capita income back to historic norms. If that happens, Canadians may have to give up their bragging rights in the North American wealth sweepstakes.