According to a recent report from the Parliamentary Budget Officer (PBO), Canada’s decision to reduce immigration targets will have significant economic implications. The federal government’s plan to decrease new permanent residents from 500,000 to 395,000 in 2025, with further reductions planned through 2027, is projected to result in a 1.7% decline in GDP. This policy shift is expected to reduce the country’s population by 1.4 million people and lead to 1.3 billion fewer working hours by 2027, though real GDP per capita could see a 1.4% increase.
