In Q1 2025, Statistics Canada recorded a record widening of the income gap — the difference in the share of disposable income between households in the top 40% and the bottom 40% by income level. This indicator reached a historical maximum of 49.0 percentage points, compared with 43.8 p.p. in Q1 2021. The income gap is defined as the difference in the share of disposable income (after taxes and transfers) between the top 40% and bottom 40% of households. This parameter reflects not absolute amounts, but the relative weight in the total income of the population. Households in the top 20% recorded an increase in average disposable income of 7.7% (≈ +3,748 CAD), of which: +4.7% (≈ +2,441 CAD) — wage growth; +7.4% (≈ +1,070 CAD) — growth in investment income. Households in the bottom 20% experienced the weakest growth in disposable income — +3.2%, due to: a 0.7% (≈ –17 CAD) decline in average earnings, caused by a reduction in working hours, especially in the extractive and manufacturing sectors; a -35.3% (≈ –399 CAD) decline in investment income, which exceeded the gain from reduced interest payments; an increase in transfers (social assistance, unemployment insurance, reduced tax burden) by +31.2% (≈ +733 CAD), which only partially offset the losses. The Bank of Canada cut the key rate from 5.0% (April 2024) to 2.75% (March 2025), which led to a decrease in household interest payments by 4.8% in the first quarter of 2025. A plus for households with debt, but a reduction in savings income for those without diversified investments. The decline in real property prices has negatively affected the wealth of poorer households. The weakening labor market since the beginning of 2023 has reduced employment, especially among the lower and middle segments. The poorest households increased their net negative saving by 3.9%, consuming income faster than they earned. Middle-income households increased their net saving thanks to rising income (+5.9% with expenditures +4.5%). The top tier of households improved their situation thanks to rising wages and investment income (+9.6%). The top 20% of households held 64.7% of total net wealth (≈ CAD 3.3 million per household); the bottom 40% held only 3.3% (≈ CAD 85,700). The wealth gap — the difference in the share of wealth between the top 20% and the bottom 40% — reached 61.4 percentage points, increasing by 0.2 percentage points over the year. Reasons: financial assets grew by 6.7%; real estate fell by 1.4%, which had a greater impact on the less wealthy. The youngest age group (< 35 years old) increased their wealth by only +0.5%, having reduced their mortgage debt. In Q3 2024, the income gap was 46.9 percentage points, and in Q2 2024 — 47.0 percentage points. The current figure is significantly higher and continues the growing trend since the onset of the pandemic. In Q1 2025, the income gap between rich and poor households in Canada was the highest since the beginning of tracking — 49.0%. Key drivers: 1. Growing incomes and investment advantages of high-income households; 2. Lower earnings and investment income for low-income earners; 3. Increased social transfers partially offset inequality, but do not eliminate it; 4. Lower interest rates benefit debtors, but limit savings income; 5. The wealth gap remains stable and even widens. Trends indicate an ongoing systemic tendency: economic benefits are increasingly concentrated among the upper strata of the population, increasing economic inequality in the country. Sources: www150.statcan.gc.ca, ctvnews.ca, bnnbloomberg.ca, cp24.com, realeconomy.rsmus.com