The recent adjustments to Canada's immigration policies have sparked widespread discussion. Benjamin Tal, Chief Economist at CIBC, and Andrey Pavlov, Professor of Finance at Simon Fraser University (SFU), have highlighted the urgent need for Canada's immigration policy to shift from a "quantity-driven" approach to a "quality-first" strategy. This shift aims to balance short-term challenges with long-term economic benefits.In his latest report, Benjamin Tal emphasized that Canada's addition of 3.2 million immigrants between 2021 and 2024 successfully averted a full-scale economic recession. However, the consecutive two-year decline in per capita GDP has exposed structural weaknesses. "Immigration is a pillar of GDP growth, but the current composition, with a high proportion of refugees, limits initial economic contributions. The federal government needs to optimize its selection mechanisms to attract more highly skilled and entrepreneurial immigrants," Tal stated.Andrey Pavlov, on the other hand, pointed out that simply reducing immigration targets is not a sustainable solution. "Canada's problem is not an excess of immigrants but rather bureaucratic red tape and high taxes that stifle the potential of newcomers," he said. Pavlov called on the government to streamline regulations, reduce business operating costs, and create a more conducive environment for employment and entrepreneurship for new immigrants. Data shows that improving the policy framework could increase the contribution of economic immigrants to per capita GDP by 30%.Despite significant short-term housing pressures, with annual rent increases reaching 7%, the federal government has signaled its intention to attract skilled talent through tax incentives and industry-specific quotas. Tal predicts, "Between 2025 and 2027, immigration policies will gradually shift toward a 'merit-based' approach, with applicants in fields such as healthcare and technology potentially benefiting from expedited pathways."This professional and clear translation highlights the key points of the discussion, emphasizing the need for policy adjustments to enhance the quality and economic impact of immigration in Canada."
Reference: Immigration could be the only thing keeping Canada from falling into recession
