Stock Market Capitalization to GDP for Canada

DDDM01CAA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

160.53

Year-over-Year Change

141.19%

Date Range

1/1/1977 - 1/1/2020

Summary

This indicator measures the total value of publicly traded stocks in Canada as a percentage of the country's GDP. It provides insight into the size and importance of the Canadian stock market relative to the overall economy.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The stock market capitalization to GDP ratio is a key economic indicator that compares the total value of publicly traded stocks to the size of the national economy. It offers insights into the development and efficiency of the stock market and can signal overvaluation or undervaluation.

Methodology

The data is calculated by dividing the total market capitalization of listed domestic companies by the country's GDP.

Historical Context

This ratio is closely monitored by policymakers, investors, and analysts to assess financial stability and long-term economic prospects.

Key Facts

  • Canada's stock market capitalization was 110% of GDP in 2021.
  • The ratio has fluctuated between 60-130% over the past two decades.
  • High ratios can signal overvaluation or a speculative bubble in the stock market.

FAQs

Q: What does this economic trend measure?

A: This indicator measures the total value of publicly traded stocks in Canada as a percentage of the country's GDP.

Q: Why is this trend relevant for users or analysts?

A: The stock market capitalization to GDP ratio offers insights into the development and efficiency of the stock market, and can signal overvaluation or undervaluation.

Q: How is this data collected or calculated?

A: The data is calculated by dividing the total market capitalization of listed domestic companies by the country's GDP.

Q: How is this trend used in economic policy?

A: This ratio is closely monitored by policymakers, investors, and analysts to assess financial stability and long-term economic prospects.

Q: Are there update delays or limitations?

A: The data is subject to the availability and timely reporting of both stock market and GDP figures.

Related Trends

Citation

U.S. Federal Reserve, Stock Market Capitalization to GDP for Canada (DDDM01CAA156NWDB), retrieved from FRED.