M2m condos buzzbuzz . House prices will still rise by 5.0%. Canada hopes that more immigrants will boost economic growth and ease the worsening labor shortage caused by the COVID-19 epidemic.Please Visit: M2m condos buzzbuzz to Get Your VVIP Registration Today!
But new immigrants could keep the runaway property market soaring, which the central bank warned was spurred by a “sudden influx of investors”.
A government source said that Trudeau’s government is expected to achieve its goal of 401000 new permanent residents this year and is preparing to target 411000 new immigrants next year.
In the face of declining fertility, successive Canadian governments have relied on immigration to drive economic growth, which hit an all-time low last year. Attracting immigrants has become even more important as the epidemic has triggered the early retirement of older Canadians. In addition, Canada’s goal is high-quality immigrants, who can often bring money and income to buy ideal housing.
“Canada needs immigrants to create jobs and boost our economic recovery,” Sean Fraser, the new immigration minister, told Reuters. Not only is one in three Canadian companies founded by immigrants, but new immigrants are also helping Canada solve its labor shortage. ”
The surge in house prices is mainly due to low interest rates and supply shortages, although immigration was another factor before the epidemic. Now, as the border opens again, more new immigrants will come to Canada.
The surge in house prices has fuelled inflation, reaching an 18-year high. Economists say the government’s plan to ease housing costs will take time to implement, and some measures may further strengthen demand.
“this is a difficult problem.” Stephen Brown, a senior Canadian economist at Capital Economics, said of the impact of immigration on housing costs.
At the same time, Brown said that Canada’s ongoing construction and the demand for labor prove that we need more immigrants. Canada has reached a tipping point where there would be no increase in the labour force without immigration.
Job openings in Canada have doubled this year, according to official figures. The Canadian Association of Manufacturers and exporters has asked the government to double its economic immigration target by 2030 because of a shortage of workers in manufacturing.
Benchmark house prices have risen 77.2 per cent since Trudeau took office in November 2015. His government plans to submit a housing plan to Parliament, including a C $4 billion (US $3.2 billion) fund for the largest cities to speed up the housing plan.