Canada’s Economy to Slow With New Limits on Temporary Migrants
- Lower population growth is reason to be ‘more bearish’: Mendes
- Government’s new restrictions aim to cool housing demand
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Canada’s planned reduction in temporary residents is set to add downward pressure to inflation and economic growth in the coming months, and the policy will likely halve its population growth rate when it takes full effect next year, economists say.
Prime Minister Justin Trudeau’s government plans to reduce the number of temporary immigrants by 20% over the next three years, bringing the level down to 5% of the population from 6.2% currently. Starting in May, the government will make it harder for firms to rely on temporary foreign workers.