Ottawa’s immigration cuts will chop 1.7% off GDP in 3 years: PBO [but improve GDP per capita]

As expected. But part of addressing decline in GDP per capita:

…Canada’s plan to reduce the number of immigrants over the next three years will result in a 1.7 per cent drop in the country’s gross domestic product  (GDP) by 2027, according to the federal fiscal watchdog.

The report from the parliamentary budget officer (PBO), Yves Giroux, on Thursday also said that new immigration targets released by the federal government last fall will slash the country’s population by 3.2 per cent or 1.4 million people over the next three years.

The PBO report comes days after Statistics Canada reported this week that Canada’s population could reach up to 80 million in 50 years, with migratory increase a “key driver of population growth.”

The PBO report said that the federal government’s new target to reduce immigration levels would lead to 1.3 billion fewer hours worked in 2027, resulting in the drop in the real GDP.

“However, given the sizeable population shock, real GDP per capita would be 1.4 per cent higher in 2027 under the 2025-2027 [Immigration Levels Plan],” the report said….

Source: Ottawa’s immigration cuts will chop 1.7% off GDP in 3 years: PBO