Cutting off foreign students, temporary workers will hit Canadian economy: Report

Toronto, Jan 15: Closing doors to temporary workers and foreign students allowed into Canada would blunt the country's economic recovery and deepen the recession, a capital market company has warned.

According to predictions by Montreal-based Desjardins Securities, the country's real GDP will grow just 0.1 percent in 2024 and an average of about 1.95 percent annually from 2025 through 2028.

But if it were to shut the door to temporary residents, real GDP would drop by 0.7 percent in 2024 and grow an average of 1.78 percent annually over the following four years, Bloomberg News said, citing the report.

On the other hand, if it doubles the pace of non-permanent resident admissions, the country would experience a milder economic slowdown than anticipated and avoid a potential recession altogether, Randall Bartlett, Desjardins' senior director of Canadian economics, said.

Real GDP would then grow 1 percent in 2024, and top 2.1 percent on average after that, Bartlett said in a report released last week. The report comes as Prime Minister Justin Trudeau faces backlash over rising cost of living, and growing inflation, acknowledging the need for adjustments in immigration policy.

In one of the most recent moves to address these issues, the government decided to double the amount of money that international students need to show to get a study visa.

"It would be a mistake to blame international students for the housing crisis. But it will also be a mistake to invite them to come to Canada with no support, including how to put a roof over their heads," Immigration Minister Marc Miller had said while announcing in December.

The students will now have to show at least their $20,635 account on top of their one-year tuition fees, and if they bring one family member with them, they will need to show an additional $4,000.