The Fraser Institute’s Post

Canada, once admired for its robust economic health and high living standards, now faces a worrying decline. The nation’s gross domestic product (GDP) per capita growth trails its peers in the https://ow.ly/YHv150REV7e

🇨🇦 Canada is experiencing one of the country’s worst declines in the standard of living in 40 years, according to a study. The authors of the study by the non-partisan Fraser Institute said the figures should serve as a “wake-up call” for the country’s Liberal government, led by Justin #Trudeau, to enact “fundamental policy reforms”. While #Canada’s gross domestic product (GDP) has grown in recent years, driven by high population growth and labour supply, its GDP per person has fallen dramatically, the study said. It found that from mid-2019 to the end of 2023, GDP per person dropped 3 per cent when adjusted for #inflation, from $59,905 (£34,625) to $58,111 (£33,588). Moreover, it warned that the decline was continuing and “may still exceed” the steep economic downturn of the late-1980s and early-1990s in its length and depth. Measuring a country’s #economic health is complex, and the tools used to calculate economic activity can be contentious. GDP is a key metric and is typically measured either in aggregate or per person. Read more 🔗 https://lnkd.in/eXvSQX_s

Our population is growing well above trend because it has been chosen. Net migration to this country is a policy choice. So why has our standard of living (GDP per person) stagnated since 2014? We have gotten collectively poorer, by choice. This choice has had massive ramifications for inflation, the housing crisis and the availability of government services like health care and education. There are only so many nurses/teachers/doctors/construction workers we can train, and so many homes/schools/hospitals we can build in a given year, and any pace of population growth that ignores the speed limits of this country’s economy is pushing on a string. On top of all the distortions induced by the pandemic, the combined impact of a decade of reckless population growth has forced the Bank of Canada to increase rates higher, and hold them longer than it would have otherwise.

Experts say Canada faces a population challenge According to a National Bank Financial Inc. report, https://zurl.co/aL0p Canada is experiencing a population trap, where rapid population growth clashes with infrastructure limits, causing the standard of living to plateau. Canada's population growth in 2023 was 3.2%, five times the OECD average. All provinces grew at least twice as fast as the OECD average. This growth challenges sectors like housing, where supply is at a historical deficit. To meet demand and control shelter cost inflation, Canada needs to double its housing construction to an unrealistic 700,000 starts annually. The report asserts that such population growth hinders Canada's economic health, as evidenced by stagnant Real GDP per capita for six years. The report recommends setting population goals considering the nation's capital stock and limiting annual population growth to 300,000 - 500,000 to escape the population trap. Contact Solutions Line Immigration for more! Call us at +1 289 637 1287 email us at [email protected] #canadaimmigration #canada #immigration #visit #visitcanada #canadapr #canadavisa #toronto  #immigrationlawyer #visa #Population_growth, #Canadian_population

Just stumbled upon this insightful read about Canada's economic landscape amidst population growth. As interest rates hold at 5%, discover the impact of immigration on inflation, workforce dynamics, and potential growth. Check out the full article: https://lnkd.in/gHAsDb6E

As the Canadian federal government continues to limit non-permanent resident arrivals, many are wondering how this will impact Canada's economy. While GDP growth may slow down, other key indicators like per-capita GDP, unemployment rates, inflation, and interest rates are expected to remain stable. However, it's important to consider the broader implications, particularly in terms of labor force participation and government revenue growth. On the positive side, this policy adjustment presents an opportunity to address longstanding challenges in sectors like housing, where supply shortages have contributed to affordability concerns. With time for supply to catch up with demand, we can work towards ensuring a more sustainable economic future. Full report - https://lnkd.in/gXwXbFSc #CanadaEconomy #PolicyUpdate #EconomicOutlook #DemographicShifts #HousingAffordability #finance #immigration #pr

As we welcome 2024, I'm astounded by Canada's population growth, the most significant since 1957. The country saw an unprecedented increase of over 1 million people in a single year, primarily fueled by international migration, resulting in a 2.7% annual growth rate. If this trend persists, Canada's population could double in just 26 years. This population boom is disrupting various economic sectors, particularly consumer demand, spending, and housing. The newcomers are predominantly educated, young, and financially capable economic migrants, driving new business ventures and investments, and revitalizing sectors like industrial, hospitality, and consumer-focused businesses. While challenges exist, such as accommodating the substantial increase in immigrants and non-permanent residents -the increase is creating pressures in the housing market, infrastructure, and service delivery; Experts consider the overall prognosis to be optimistic. This population surge is anticipated to buffer Canada against a more severe recession and keep the economy afloat amidst global slowdowns. This demographic shift is a critical factor for international businesses considering the Canadian market, and the escalating demand for consumer goods and housing. What's your take on this? Let's discuss. #Canada

🍁 Canada has entered the first population trap in modern history. This is typically seen in emerging economies, not developed economies like Canada. A population trap is where we can't make improvements to our standard of living because the population is increasing so quickly that all the capital we have is used just to keep things the way they are. Last year we welcomed 1.2 million immigrants and 825k in 2022. Our population growth was 3.2% last year, 5x higher than OECD average. This has impacted housing concerns where supply deficit reached record 1 housing start for every 4.2 people entering the working age population versus historical average of 1.8. To catch up on housing supply, we need to double our capacity which is almost impossible even all these extra incentives the government is providing. Population is good for the long-term GDP of a country, but our current growth is impeding our economic well-being. Our GDP per capita has been flat for 6 years and decreasing recently. Canada's stock of capital - which include resources infrastructure, machinery, technology, and other assets that contribute to economic production, is not enough to keep up our our population growth. We can evidently see this in hospital wait times for example in our day to day life. The information above is based on the latest special report from National Bank. Their suggestion is to keep growth at 300k-500k to escape this population trap. #economics #populationgrowth #canadianimmigration #canadarealestate #housingcrisis

Canada’s plans to reduce temporary residents could impact GDP and inflation According to a new report by Desjardins, the plan to reduce non-permanent residents (NPRs) in Canada could impact real GDP growth and inflation, especially shelter costs. Fewer NPRs could boost per capita GDP and real wage growth. Despite the theory that higher wages might lure people back into the workforce, evidence is limited. Current underemployment rates and those wanting employment are historically low, with most sidelined due to illness or personal responsibilities. Sectors employing NPRs, like accommodation, food services, and retail, could face pressure from rising wages and labour scarcity. These sectors, already hit by the pandemic and an increase in insolvencies in 2024, may face more challenges with less low-cost, temporary labour but could also be forced to innovate. #Temporary_residents, #foreign_workers, #labour_shortages, #inflation