If all you ever thought about Canada is that it’s the land of ice, snow, oil, wood and hockey it’s time to think again about doing business in Canada. For example, number of millionaire households in Canada is set to surge 38% and total wealth will more than double, according to a new report.
A study carried out by the Deloitte Centre for Financial Services of 25 countries found that the number of millionaire households in Canada will jump from 1.74 million to 2.4 million in the next nine years according to a report on Global Wealth. This study also found that Canada’s total wealth will rise from $3.35 billion to $6.77 billion. This is great news for a population of some 35 million but still a drop in the bucket in comparison to the U.S.
For example, the total wealth projected in the millionaire households world-wide will grow from $92 Trillion in 2011 to $202 Trillion in 2020. For my American friends who think that their economy is still on the skids, they should be a whole lot more optimistic now because the study also found that the U.S. is likely to remain the world leader in terms of total wealth followed by Japan and Italy.
For example any American worried about the U.S. economy should be investing heavily in real estate, stocks and or bonds since the same study predicts that 43% of the world’s millionaire households are predicted to be in the United States and also the number of millionaire households in the United States is projected to increase from an estimated 10.5 million in 2011 to 20.6 million in 2020.
While this news is good for Canada right now, it’s projected that even with this impressive growth Canada is likely to slip in wealth status to 8th world-wide since China is expected to make huge gains in the next number of years and is currently in 12th place.
The study also showed that wealthy Canadians have the biggest portion of their money in cash and other categories, which accounts for 28% of their total holdings. Canadian millionaires also tend to hold equal shares in real estate and domestic stocks at about 21% and over 11% in foreign stocks.
Meanwhile with the bloom off American real estate in the short-term (except for those Canadians investing in warm climate states like Florida and California) the ownership of property still accounts for 51% of millionaire household assets in Italy, compared with 45% in Spain and 35% in Hong Kong.
This study also shows that Canada is still a safe haven to do business, start a new lifestyle or just continue doing what we have been doing since the economy is maintaining a steady growth and there is also strong projected future growth.
This is also a great message for my American friends who can now start to change their attitude slightly and view their economy as one of the best in the world and see that it’s time for America to start to rebuild its business base, its cities, its real estate and its stock market. Even with the current downturns the U.S. it is still the leader in the number of millionaires world-wide.
So even though you think that Canada is that northern white spot on the map north of the 49th parallel remember there are millions of dollars up here waiting for investors and new products and Canada represents a great market for any type of business.
Kensel Tracy is the Marketing Coach, Senior Partner with the Corporate Coachworkz Inc. and President of Business Over Breakfast Clubs currently opening in every city and town in North America.