Based on the International Monetary Fund (IMF), Canada trails only the United States (in 2023) as well as Spain (in 2024) when it comes to the projected real GDP (Gross Domestic Product) expansion in the coming two years.
Real GDP is often used to assess a country’s general economic health.
In 2023 it is expected that in 2023, the U.S. is projected to witness its GDP real growth by 1.6 percent, while the development of Canada is expected to be 1.5 percent.
The IMF estimates that Spain’s GDP will grow by 2.0 percent in 2024. the Canadian figure will rise by 1.5 percent again.
What is this referring to?
Real GDP growth, as defined by the IMF, “is often used as an indicator of the general health of [an] economy.” An increase in this figure generally indicates that the economy is performing well.
As per the IMF, The IMF states that growth in Real GDP will “likely” coincide with an increase in employment and general economic well-being because firms generally require more manufacturing jobs to create items. In turn, because of the cycle of economic growth caused by increased manufacturing of goods and services, times with significant increases in GDP real often indicate that individuals will “have more money in their pockets.”
In the case of Canada’s most recent immigrants, the number of job opportunities could increase throughout the country, which will increase the chances of obtaining a job that will provide economic security as a new permanent resident (PR).
Furthermore, having a more significant amount of disposable income benefits Canadians, especially those just starting their journey in Canada. With the price of items like groceries, household utilities, and transportation varying, savings are crucial for those new to the country who want to build stability in their new residences.
What is the role of immigration in the growth of real GDP?
Through growing the Canadian population and thus growing the number of people in a position to produce products and services, the immigrants to Canada are a significant factor in increasing the country’s GDP expansion.
For the next three years, Canada’s immigration levels Plan 2023-2025 states the intention of the government to receive as many 500 000 immigrants each year by 2025.
Note that Canada’s Immigration Levels Plan indicates that Canada wants to receive more than 465,000 new immigrants by the end of the year 2023’s future and a further 485,000 immigrants in 2024. Then, 500,000 brand-new PRs by 2025.
Immigrants’ impact on this nation’s GDP growth is expected to increase. Since more workers-aged PRs are being included in the country’s workforce, Canada can expect to have more robust and prospering economic growth in the coming years.
