Copyright © BusinessAMBE 2023
In summary.
One home for every 4.2 working people
In the news.
- Since
Justin Trudeau took power, immigration policy has been dictated by the Century Initiative think tank. Ignoring the consequences, the number of immigrants has doubled in the past decade. -
Economists at the
National Bank of Canada suggest in a report thatCanada's annual population growth should be limited to 300,000 to 500,000 people to avoid the population trap. - The current rapid growth is creating shortages, especially in housing, with only one home being built for every 4.2 working people is. That is far below the historical average.
- Policymakers need to match population growth to the available capital stock, the economists write, not just housing.
Zoom in. That has implications for the housing market. Average rents in
- The capital share per capita dropped dramatically to about 1.5% in 2023. Compare that to a peak of nearly 4.5% in the 1960s.
Population growth of 3.2% is five times higher than
Zoom out. This trend is often observed in emerging economies and requires an increase in savings or a reduction in population growth. Or both.
Canada's population growth rate of 3.2% over the past year was five times higher than theOECD average.-
All this does not bode well for Prime Minister Trudeau:
-
According to Conservative opposition leader
Pierre Poilievre , Canadian cities have become "crime zones" under Trudeau's rule. Nor is the necessary action being taken to reduce violence. -
The
Conservative Party of Canada has a comfortable lead (10 percent) over Trudeau'sLiberal Party of Canada in all polls. But elections are not scheduled until 2025.
-
According to Conservative opposition leader
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