Canada's Immigration Targets and Economic Forecast

Canada's new immigration reduction targets may strongly influence the Bank of Canada's growth forecast more than inflation, according to Governor Tiff Macklem. Macklem noted uncertainties about the rapidity of implementation and its effects. If population growth slows quickly, GDP growth could be lower than expected.

Canada's newly announced targets to reduce immigration are expected to significantly impact the country's growth projections, according to Tiff Macklem, the Governor of the Bank of Canada.

During a statement on Friday, Governor Macklem expressed concern over the uncertainties surrounding the swift implementation of these immigration curbs and how they may affect the bank's predictions. He mentioned that a faster-than-anticipated decline in population growth could result in a lower-than-expected GDP growth rate.

Despite these potential impacts, Macklem suggested that if household spending picks up pace, driven by continuing low borrowing costs set by the central bank, economic growth prospects could exceed expectations.

(With inputs from agencies.)