Canada Adjusts Immigration Targets to Address Housing Crunch and Inflation

Canada's liberal government has decided to maintain its immigration targets for the next two years and halt further increases from 2026 onwards due to concerns over high inflation and a housing crisis. The country aims to welcome 465,000 new residents this year, 485,000 in 2024, and reach 500,000 in 2025, with the goal of maintaining this level in 2026. While some economists blame immigration for exacerbating the housing shortage, the Royal Bank of Canada argues that a pause in immigration levels is appropriate but that the country will still need immigrants in the long term to stabilize its population and support economic growth.