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Globe says Nat Bank's Marion warns on immigration

2024-01-15 07:42 ET - In the News

The Globe and Mail reports in its Saturday, Jan. 13, edition that immigration is becoming a sensitive issue in Canada as the impact of rapid population growth is being felt in many sectors of the economy, particularly housing and public services. The Globe's guest columnist National Bank of Canada chief economist Stefane Marion writes that while it is true that an aging population in most OECD economies threatens potential future GDP growth, the question is how much we want to bring immigration policy forward to address this threat. Canada's population growth rate near the end of 2023 was 3.2 per cent, five times higher than the OECD average. What is more, all 10 provinces grew at least twice as fast as the OECD, ranging from 1.3 per cent in Newfoundland to 4.3 per cent in Alberta. Mr. Marion says he does not deny that immigration improves Canada's supply of workers and taxpayers, and that it strengthens our economic prospects in the long run. However, he says Canada's current population growth appears to be extreme in relation to the absorptive capacity of the economy and the fact that our worker population is not aging faster than the OECD average.

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