Canada’s real GDP growth to rank second-highest in 2023 and 2024, after the USA in 2023 and Spain in 2024. This is a prediction among the G7, per the International Monetary Fund. The real GDP reveals the economic condition of a country. In 2023, the U.S. will be witnessing a real GDP growth of 1.6 percent, while it will be 1.5 percent for Canada.
On the other hand, the IMF predicts Spain’s real GDP to rise by 2 percent in 2024. Meanwhile, Canada’s GDP in 2024 will likely rise by 1.5 percent.
Canada’s real GDP growth ranks second-highest- what does this imply?
IMF claims that a country’s real GDP indicates its overall economic condition. A positive addition in the figure will imply that the country is doing fine economically. According to IMF, this real GDP growth will typically merge with a rise in employment and economic prosperity. This is primarily because companies usually need more factory employment for the production of goods.
As a result, the rise in the production of goods and services will lead to the development of an economic cycle or pattern. Therefore, the timeframe with immense real GDP growth indicates that individuals will likely have an increased purchasing capacity.
The new immigrants arriving in Canada will witness a rise in the number of work opportunities. Moreover, this will increase their capacity to find work, thereby leading to economic comfort with Canadian Permanent Residency.
Additionally, Canadians will benefit the most if there is a rise in their purchasing capacity, specifically those embarking on a new journey in Canada.
Also, the estimated fluctuations in household goods, groceries, and transportation will further substantiate the added disposable income for newcomers. This means they will consider it the primary factor in stabilizing their life in their new homes.
The GDP Growth and the Role of Immigration
Canadian immigrants play a vital role in enhancing real GDP growth as they are more likely to contribute to the Canadian workforce. This is also because these newcomers increase the number of people contributing to producing goods and services.
Canada’s Immigration Levels Plan 2023-2025 reveals the country’s intention to bring in 500,000 new immigrants each year until 2025.
The latest plan also implies that Canada is preparing to welcome 465,000 newcomers by the latter part of 2023. Moreover, it plans to receive 485,000 newcomers in 2024 and 500,000 new permanent residents by 2025.
Further, immigration’s impact on real GDP growth will rise accordingly. Overall, the Canadian economy will prosper in the upcoming years due to a rise in the working-age PRs within the Canadian workforce.
