Economies around the world are still recovering from the recession that hit in 2008. Among these economies, Canada has proven to be strong and stable. National Bank Financial’s report claims that without immigration, Canada would have experienced the same decline as in other developed nations.
There were concerns about how the Canadian housing sector would bear the recession. However, the sector remains strong to this day and the National Bank Financial has attributed the sector’s success to immigration. NBFl’s senior economist Mr. Argeneau believes that the pace of household formation is the most important difference between the strong Canadian housing market and the housing bubble that recently burst in the US.
During the past few years, Canada has seen high levels of net migration in the 20 to 44 age group. This very group of newcomers is in a position to form new households and thus create a demand for the Canadian housing sector. According to Mr. Argeneau, Canada experienced an overall population growth of 1.1% in the age group of 20-44 year olds. Such growth is relatively high when compared to the rest of the developed world, which experienced on average a decline of 0.3% in the same age category.
The growth experienced in Canada continues to be fueled by both a welcoming immigration policy, and the uninterrupted economic growth that the country has enjoyed thanks in part to such immigration policy. As a result, the country attracts a vast number of newcomers since it continues to offer new Canadians multiple opportunities to be successful. “In 2012, the country’s employment rate for residents born abroad was among the highest of the advanced economies,” explained Mr. Argeneau.
In the next few years, the population growth between the ages of 20 and 44 is expected to decelerate in Canada. However, the growth is expected to remain positive and higher than most developed countries thanks to Canadian immigration.