Canada’s population fell by 0.2% in the third quarter of 2023, dropping from 41.65 million to 41.6 million. This is one of the country’s biggest population declines on record. The only other quarterly drop before was in 2020 during Covid-19 restrictions. This recent fall is mainly due to fewer international students. The Canadian government decided to cut the number of study permits issued. Canada’s Liberal party, once known for high immigration under former prime minister Justin Trudeau, has changed course after public pushback on migration levels. In Q3 2023, Canada’s population growth was earlier at a record high, adding 420,000 people since 1957. But now, non-permanent residents—about 6.8% of the population—have fallen from 7.3% last quarter. Prime Minister Mark Carney aims to reduce this group to 5% by 2027. The plan includes halving new international student permits from 305,900 in 2025 to 150,000 by 2028. Meanwhile, permanent resident admissions will rise: 395,000 in 2025, then gradually decreasing to 365,000 in 2027. Finance Minister François-Philippe Champagne explained the changes, saying Canada had “exceeded our capacity to welcome” immigrants and provide services. Economist Robert Kavcic from Bank of Montreal calls this a “major population adjustment” and one of Canada’s biggest economic stories. He predicts population growth will stay near zero through 2028 before rising slowly. Kavcic notes the rapid population growth earlier caused economic problems like rental market stress and inflation. The recent dip could ease these pressures and improve GDP per capita growth. All provinces and territories saw population drops except Alberta and Nunavut, with both rising by 0.2%.