Reducing the number of new admissions to the country could have negative consequences for the economy and pose challenges for commerce, according to business advocates and economists alike.
Economic measures such as the gross domestic product (GDP) have been moving in a positive direction, economists say, in part because Canada’s population has continued to increase due to rising immigration levels.
Statistics Canada reported in March that the country’s population grew in 2023 by about 1.3 million, and 97.6 per cent of that growth was the result of immigration.
Under a government plan released last November, Canada was expected to admit about 500,000 people in both 2025 and 2026. But on Thursday, the federal Liberals changed course, announcing the projected number of new permanent residents to Canada will be cut from 485,000 this year to 395,000 in 2025, 380,000 in 2026 and 365,000 in 2027.
The move is designed to lessen pressure on the country’s housing market and stabilize population growth, Immigration Minister Marc Miller said.