As Canada looks to cut immigration numbers in the next few years, Canadians may be wondering what those shifts to the population could mean for the risks of a recession.
Experts and federal officials over recent years have pointed to high population growth, due in large part to immigration, as a factor that has helped Canada avoid an economic downturn.
“We were of the view that the Canadian economy likely would have experienced a recession in 2023 had it not been for the decades-high population growth that we saw in 2023 (and) 2024,” said Randall Bartlett, senior director of Canadian economics at Desjardins.
In January, the financial institution along with other economists had suggested a short and shallow recession was possible in the first half of the year, though as time went on that didn’t come to pass.
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Bartlett said Desjardins is anticipating real GDP (gross domestic product) growth of …