Canada’s annual immigration intake is expected to decline in 2020 by half from last year’s levels as a result of the global pandemic, raising concerns over the impact on the country’s newcomer-fuelled economy.
Canada welcomed 341,000 permanent residents in 2019 and was set to usher in another 370,000 this year, but that number is forecast to be down by as many as 170,000, according to a RBC report released Friday.
First-quarter immigration data on arrivals all indicated drastic decreases in the number of permanent residents, migrant workers and international students.
“The disruption will reverberate across the economy, given our reliance on immigration for labour-force growth and to offset Canada’s aging demographic,” warned the analysis by RBC senior economist Andrew Agopsowicz.
“Among the potential casualties: industries with labour shortages, urban rental and housing markets, and university budgets. Canada will need a younger and growing population to maintain growth and support the unprecedented expansion of the fiscal deficit that came in response to the crisis.”