Signal Equity to GDP climbed most in South Korea, the US, Canada, and Japan

Summary

MGI reports that equity generally rose relative to GDP across the economies it tracks in 2025. The biggest increases came in South Korea, the United States, Canada, and Japan, all of which reached record highs in equity relative to their economies. In level terms, Canada and the US stood at the top, with equity worth 3.8 and 3.7 times GDP respectively. The report reads the equity-to-GDP ratio as a kind of price-to-earnings multiple for an economy, where high readings signal strong expectations of future growth but also leave room for a correction if growth falls short. Most European economies and China, by contrast, remain below peaks reached around the pandemic, even though they grew somewhat in 2025.