In 2023 and 2024, the United States and Spain will lead Canada in terms of predicted GDP growth, according to the International Monetary Fund. A typical measure of a nation’s overall economic health is real GDP.
The United States is expected to experience real GDP growth of 1.6% in 2023, while Canada is expected to experience growth of 1.5%. While Canada’s real GDP is predicted to grow by 1.5% once more, Spain’s real GDP is forecasted to increase by 2.0% in 2024.
Real GDP Growth – IMF
Real GDP growth, as defined by the IMF, is frequently used as a gauge of an economy’s overall health. This value normally moves upward when the economy is doing well. Increasing employment and overall economic success are expected to go hand in hand with real GDP growth, according to the IMF. The reason being that businesses often require more factory workers to manufacture items.
Consequently, times of high development in real GDP frequently translate into times when individuals will also have more money in their pockets due to the economic cycle brought on by the increased production of goods and delivery of services.
As a result, there may be more work options available to newcomers to Canada as permanent residents (PRs), boosting their chances of obtaining a job. Additionally, having more disposable income is advantageous for all Canadians, but particularly for those who are just starting out in this country. Additional disposable income is especially important for newcomers wanting to create a measure of stability.
How Does Immigration Affect Real GDP Growth?
Immigrants significantly contribute to Canada’s real GDP development by growing the workforce there. As a result, the population of people able to produce products and services.
Canada’s Immigration Levels Plan for 2023-2025 highlights the government’s intention to accept up to 500,000 immigrants annually in 2025 during the next three years. This implies that immigration will have an increasing effect on real GDP growth in this country. Canada should anticipate a more productive and affluent economy in the near future as a result of the addition of more PRs who are of working age to the national workforce.