International Students Contributed $30.9B to Canada’s GDP in 2022

A recent analysis by Global Affairs Canada has highlighted the significant economic contribution of international students, who added $30.9 billion to Canada’s Gross Domestic Product (GDP) in 2022. This impressive figure is attributed to the combined spending of $37.3 billion by international students on tuition, accommodation, and other living expenses.

Economic Impact

The economic impact of international students is profound, with their spending surpassing the value of Canada’s exports in several key product categories, such as wood products and electronics. This influx of funds from international students plays a crucial role in supporting the Canadian economy, demonstrating the importance of the education sector as a major economic driver.

Provincial and Territorial Benefits

The increase in international students has been beneficial across all provinces and territories in Canada. Ontario, in particular, recorded the highest number of international students, solidifying its position as a top destination for foreign students. Meanwhile, Prince Edward Island experienced the greatest percentage growth in international student enrolment, indicating a broader distribution of economic benefits.

Growth Over Two Decades

The number of study permit holders in Canada has seen a dramatic rise over the past two decades, contributing to the substantial economic gains observed in 2022. This growth trend underscores the attractiveness of Canada as a destination for higher education and highlights the country’s competitive advantage in the global education market.

Key Insights from the Report

The report from Global Affairs Canada outlines several key insights:

• Total Contribution: International students contributed $30.9 billion to Canada’s GDP in 2022.
• Spending Breakdown: Their combined spending on tuition, accommodation, and other expenses amounted to $37.3 billion.
• Comparison to Exports: The spending by international students exceeded the value of Canada’s exports in notable sectors like wood products and electronics.
• Provincial Highlights: Ontario had the highest number of international students, while Prince Edward Island saw the largest percentage growth in student enrolment.

Implications for Future Policy

These findings have significant implications for Canadian education and immigration policy. The substantial economic contributions made by international students highlight the need for continued support and investment in the education sector. By fostering an environment that attracts and retains international students, Canada can sustain and potentially increase these economic benefits in the future.

The data also suggests that policies aimed at improving the experience and integration of international students could yield further economic rewards. Enhancing support services, expanding work opportunities during and after studies, and facilitating pathways to permanent residency could make Canada an even more attractive destination for international students.

Conclusion

The economic contributions of international students to Canada’s GDP underscore the critical role of the education sector in the national economy. With $30.9 billion added to the GDP in 2022, the impact of international student spending is clear and substantial. As the number of study permit holders continues to grow, all provinces and territories stand to benefit, reinforcing the importance of international education to Canada’s economic future.

For more details on the impact of international students and the full report, visit the Global Affairs Canada website.