Inequality worsening as wealth gap widens to highest since 2015: TD Bank report

The gap between the highest earners and lowest income groups last year was at its widest since 2015 as the wealthiest households saw income grow much faster than lower-income Canadians.

Higher interest rates are pushing middle- and lower-income households to spend more conservatively, which means consumer spending by the top earners will play a critical role in keeping the broader economy going.

As the national household net worth rebounded to 4.5 per cent last year, from a 6.5 per cent decline in 2022, the gains were not evenly distributed across income levels, the report said.

"Higher-income households benefited relatively more due to their larger holdings of financial assets, which were the main wealth drivers last year," said Maria Solovieva, an economist with TD Bank, in her report.