Canada's Population Growth Sets Record, Sees Fastest Rise In 66 Years

Economists and the Bank of Canada have noted that population growth has also affected the country's gross domestic product per capita and productivity levels, particularly in the last quarter.

Canada has historically relied on immigration to bolster its labor force and economic expansion. ( Image Source :Getty )

New Delhi: Canada's population reached a new high of 40.77 million in 2023, primarily driven by temporary immigration, Statistics Canada said on Wednesday. The country saw an increase of 1.27 million people in 2023, marking a 3.2% rise from the previous year, the highest growth rate since 1957, news agency Reuters reported.

However, the surge in immigration has been blamed for a housing shortage, leading to soaring house prices and decreased affordability, which has negatively impacted Prime Minister Justin Trudeau's approval ratings.

Economists and the Bank of Canada have noted that population growth has also affected the country's gross domestic product per capita and productivity levels, particularly in the last quarter, as per the Reuters report.

"In 2023, the vast majority (97.6%) of Canada's population growth came from international migration (both permanent and temporary immigration) and the remaining portion (2.4%) came from natural increase," Statscan said in a statement.

"This was the second straight year that temporary immigration drove population growth and the third year in a row with a net increase of NPRs (non-permanent residents)," it added, the Reuters report added.

Canada has historically relied on immigration to bolster its labor force and economic expansion.

According to the IMF's 2021 report, nearly a quarter of Canada's population in 2021 comprised non-native-born Canadian residents, the highest proportion among G7 nations, Reuters reported.

In response to mounting pressure, Trudeau's Liberal government implemented measures to limit the influx of international students and non-permanent residents into Canada in the last few months.

Recent opinion polls show the Liberals are set to lose power to the official opposition Conservatives in an election that has to be held by late October 2025.

As of January 1, 2024, Statscan data revealed that an estimated 2,661,784 non-permanent residents were living in Canada. Among them, 2,332,886 were permit holders and their family members living with them, and 328,898 were asylum claimants with or without work or study permits, Reuters reported.