Canadian Prime Minister Mark Carney has linked the country's economic weakness to a shift in immigration policy. The government's decision to reduce immigration has led to a flattening of population growth, which in turn has contributed to the country's technical recession.
According to Statistics Canada, the country's population decreased by 102,436 people in the first quarter of this year, a drop of 0.2% from January 1, 2025, to January 1, 2026. This reduction was primarily driven by the lower intake of non-permanent residents, including international students and temporary workers.
The decline in population was mainly due to a steep fall in temporary residents, with an estimated 171,296 fewer non-permanent residents in Canada in the last quarter of 2025. The number of non-permanent residents living in Canada decreased from 3,149,131 on October 1, 2024, to 2,676,441 on January 1, 2026.
Carney said the government's decision to take back control of immigration was a deliberate move to lay the foundation for a stronger, more resilient, and more independent Canadian economy. However, this process is settling in, and the data will be uneven in the interim.
Canada is also facing uncertainty in its free trade deal with the United States and Mexico, which has driven the government to seek new economic partnerships, including a potential comprehensive economic partnership agreement with India.
