The Financial Post reports in its Saturday, July 27, edition that there is growing uncertainty regarding the timeline and extent of Justin Trudeau's government's efforts to decrease the number of temporary residents in Canada, which complicates decision-making for Bank of Canada policy-makers.
A Bloomberg dispatch to the Post reports that the BOC raised its population growth forecasts on Wednesday, stating that the government will likely need more time to regulate the inflow of non-permanent residents. It predicts that the number of working-age people in Canada will increase by 3.3 per cent this year, up from the previous estimate of about 3 per cent. This rapid growth is boosting output and likely prevented the country from entering into a recession. The latest estimates indicates that population growth is slowing down at a slower rate than previously expected. It is projected to reach 1.7 per cent in both 2025 and 2026, which is more than half a percentage point higher than the estimates in the April report. Clarity on changes to permit programs is not expected until later this year, the bank said, and it is already expecting to revise forecasts as further measures are announced.
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