Business · Economy · 3 hrs ago
Canada’s population grew, while GDP per person rose less than first estimated
Canada’s population grew 0.5 per cent in the year to July, rather than shrinking as earlier estimates suggested.
Statistics Canada revised its figures after improving its count of non-permanent residents.
The revision changes how recent economic growth looks because more people, as well as productivity, contributed to higher total incomes.
Second-quarter growth in GDP per person is now estimated at less than 1 per cent, about half the earlier estimate.
Canada still has weak productivity growth, a problem that has persisted for a decade, and slower population growth could also weigh on the economy.
The revised population figures suggest more slack in the labour market, while wage growth has fallen and inflation remains higher.
Ottawa aims to reduce non-permanent residents’ share below 5 per cent by the end of 2027, compared with a revised estimate of 6.7 per cent; the figures raise the possibility of tighter immigration measures, but do not say what the government will do next.
Canada’s population grew by 0.5 per cent in the year to July, Statistics Canada’s revised estimates show.
The revision reflects improved counting of non-permanent residents and reverses an earlier estimate that the population had fallen by 0.5 per cent.
GDP per person grew by less than 1 per cent year over year in the second quarter, about half the rate first estimated.
The article’s author says the revised figures show population growth, not just productivity, had supported recent overall economic growth.
- Who
- Canada’s population and economy.
- What
- Revised population estimates showed growth rather than a decline, and lowered the estimated second-quarter year-over-year GDP-per-person growth to less than 1 per cent.
- When
- The population comparison is for the year to July; the GDP-per-person figure is for the second quarter.
- Where
- Canada.
- Why
- Statistics Canada improved its counting of non-permanent residents, leading to upward revisions to population estimates.
This story does not have two clearly opposing sides.
Canada’s population increased by 0.5 per cent, contrary to the earlier estimate of a 0.5 per cent decline.
Revised population estimates put year-over-year GDP-per-person growth at less than 1 per cent, about half the rate first estimated.
- Population change
- 0.5 per cent increase in the year to July
- Earlier population estimate
- 0.5 per cent decline in the year to July
- GDP per person
- Less than 1 per cent year-over-year growth in the second quarter
- Initial GDP-per-person estimate
- 2 per cent year-over-year growth in the second quarter
- Non-permanent residents
- Their improved counting led to revised population estimates
Related
Lightspeed says 250 roles affected by staffing changes
2 hrs ago · 3 sources
Canadian stock index gains more than 300 points as U.S. markets fall
1 hr ago · 2 sources
Czech defence company CSG buys 9.5% stake in MDA Space
6 hrs ago · 4 sources
Ukraine completes combat trials of airless wheels for ground robots
55 mins ago
What people are saying
The tiny bit of positivity we have had recently in our numbers may prove greatly exaggerated.
It was not productivity growth that was doing all the heavy lifting in economic growth lately.