- August 21, 2021
- Posted by: Clearport Team
- Categories: Clearport, College and University, General, News, Student Mobility
Total economic activity in Canada just 1% below its pre-COVID levels.
Canada’s Economy grew 2.5% annualized between April and June 2021, despite slow April and May. Increased vaccination coverage and recent announcements by the Government of potential re-opening of Canada’s border in September indicate that studying in Canada is now safe for International Students.
Per a recent article by CTV News, the Canadian economy seems to have increased its pace of recovery.
In the article, BMO’s Chief Economist, Douglas Porter, says that “spring lockdowns in much of the country triggered the first monthly GDP declines in a year” (he is referring to April and May 2021), “but those setbacks are expected to be reversed in relatively short order, with June’s rebound alone almost doing the job”.
Although April and May 2021 saw small declines in economic activity, mainly due to the reinstatement of restrictions in some Canadian cities and provinces, a strong June has placed the total economic activity in Canada just 1% below its pre-COVID levels.
The article indicates that, according to Jimmy Jean, Desjardins Chief Economist, “getting through the last one per cent may not take much longer, even though some sectors have longer to go than others”.
As restrictions continue to be eased in most places across Canada, and as the vaccination coverage of its population increases, it is expected that Canada will see a sharp bounce back in the 3rd quarter of 2021, if no unexpected events occur.
Desjardin’s Chief Economist also said that, by then, “we will also be talking about the Canadian economy having fully recuperated its pre-pandemic losses”, and that getting there would be “an important milestone, but I think we also have to remember that we’re still not quite there when it comes to the labour market. That’s where there’s still quite some ways to go.”
The recent GDP preliminary Statistics Canada figure of 2.5% growth in the 2nd quarter surpassed the earlier forecast by the Bank of Canada, which envisioned a 2% annualized growth rate in the 2nd quarter, and a 7.3% annualized growth for the 3rd quarter.
Per the article, Statistics Canada also mentioned that said the easing of COVID-related restrictions in many provinces in June helped reverse prior losses in sectors that depend mainly on in-person services, such as food services, retail, and accommodation, all of which saw growth in June. Statistics Canada comments on June 2021 preliminary figures for the 2nd quarter also point out to gains in manufacturing during June. Final figures for June and the 2nd quarter will be published at the end of August.
Meanwhile, the Federal Government recently announced that it has extended aid programs to businesses and workers until October 23 at the current benefits rates. Federal Finance Minister, Chrystia Freeland, said that the government wants to ensure that especially small businesses have the needed support to support a full and solid recovery of Canada’s economy.
Finally, the CTV News article mentions that CIBC Senior Economist, Royce Mendes, thinks that Canada’s economy still has opportunities to recover more of the ground it lost during this summer, as the number of virus cases remains generally low across Canada. Mr. Mendes wrote recently that “there remain challenges on the horizon, most notably in the form of variants of the virus which have slowed progress towards healing in other developed economies.”
According to Statistics Canada, in June retail sales grew 4.2% to $56.2 Billion, as COVID-related restrictions were eased across the country. However, they also report that its preliminary estimate for July, which will be revised at a later date, seems to suggest that retail sales actually fell 1.7% in July.
Meanwhile, Statistics Canada reported that June retail sales increased most of the 11 subsectors of this sector, with clothing and clothing accessories stores leading with increases of 49%+ following declines in the previous 2 months. General merchandise stores sales grew 7.4%, motor vehicle and parts dealers gained 2.7%. In Volume, retail sales grew 4.1% in June.
Safe to study in Canada – Canada has vaccinated over 83% of its population 12 years or older.
Total Country statistics by the Government of Canada show that Canada has vaccinated more than 83% of its population 12 years or older with at least one dose, and over 74% are fully vaccinated.
Source: COVID-19 Vaccination Tracker
Canada’s 3 largest provinces by population have vaccinated more than 82% of those 12 and older (ordered by population size, Ontario is at 82.0%, Quebec at 85.7%, and British Columbia at 83.1%).
Leading in terms of percentage of eligible population that has received one dose, although with small population bases, are Yukon at 95.7% and Prince Edward Island at 90.4%.
In addition, the Prime Minister of Canada, Justin Trudeau, recently announced that Canada has received more than 66 million doses of COVID-19 vaccines, which is enough to fully vaccinate the eligible population two months ahead of the original September target.
The Prime Minister emphasized that
“The best way to end this pandemic is for everyone to get their shots as soon as they can. Today’s milestone is a clear sign that we are getting closer to this goal. I urge Canadians to book their vaccine today, to protect themselves, their loved ones, and their communities. We will keep doing what is necessary to protect the health of Canadians, finish the fight against COVID-19, and ensure a strong economic recovery for everyone.”
Justin Trudeau, Prime Minister of Canada
Source: Government of Canada
Vaccination Coverage in Canada, good news for International Students
Canada leads the World in Vaccination coverage
For International Students that want to come to study in Canada, the Graphic below shows that Canada is safe as it has vaccinated 73% of its Total Population, ahead of other G7 countries, including popular Study Destinations for International Students such as the U.S. (60%) and the U.K. (70%).
Canada ranks #3 in the World in most in-demand Study Destinations.
The number of International Students in Canada has grown six times in the past 20 years, and tripled in the last 10 years.
Canada jumped to rank 3rd in global Study Destinations in 2020, only behind the U.S. and the U.K.
Canada is the most attractive study destination worldwide for International Students.
This is because Canada has the most complete offering for International Students, including:
- Quality of education, with credentials that are globally recognized
- A safe, multicultural, and non-discriminatory environment
- More affordable Tuition and Cost of Living than other study destinations – Canada ranks #1 in affordability vs. the top world Study Destinations (16% more affordable than the U.S., 36% more affordable than the U.K., and almost 14% more affordable than Australia, per our recent blog post)
- Quality of Life, ranking in the best globally, with 3 of the Top-10 most livable cities in the world
- Great Study Program options and choice – 103 Colleges and Universities, and more than 30,000 Study Programs in over 700 fields of study
- Huge range of fun activities, nature and landscapes
- Great chances to make lifetime friends and connections
- Regulations that allow International Students to work while they study
- A clear path to a Post-Graduation Work Permit for International Students graduating from a Post-Secondary Program in Canada
- Job Opportunities
- A Vibrant Economy, and
- A clear path to Permanent Residence in Canada
Canada’s Attractiveness as a Study Destination has Increased the Most.
Canada’s attractiveness for International Students is further confirmed by a recent survey report. The survey, conducted among education agents in 73 countries, evidences that Canada’s appeal for International Students continues to grow.
Canada shows bigger improvements than any other country between September 2020 and March 2021, using as key indicator the demand perceived by education agents worldwide. Almost 90% of surveyed education agents agree/strongly agree that they have seen more interest in Canada as a Study Destination than for other countries.
This increased interest in Canada among International Students has been spurred by the excellent way the country has managed COVID, in particular with measures targeted at protecting and helping them. The survey cited above indicates that 63% of surveyed education agents rated Canada as “Very Attractive”, well ahead of the UK and Australia, at 51% and 49% respectively. Approximately 75% of surveyed agents agreed that the handling of COVID by the Canadian Government had made it more attractive as a Study Destination.
This is not surprising, as Canada has implemented a well-coordinated COVID response plan considering the needs of International Students, both existing and new. Coupled with the extensive vaccination coverage reached to date, the Government of Canada took the right measures and has made the right announcements for International Students. A summary of the most significant of these measures and announcements includes:
- Allowing existing Study Permit holders to travel back to Canada after it closed its borders
- Giving International Students access to CERB, Canada’s Emergency Response Benefit
- Announcing changes to Canada’s PGWP-Post Graduate Work Permit Program, recognizing International Students enrolled in Canadian Universities and Colleges the time studying online outside Canada
- Publishing the list of Designated Learning Institutions (DLIs) with approved COVID-readiness Plans
- Opening Permanent Residence applications for 40 Thousand International Students graduated from Canadian Universities
Moreover, as a result of the speeding vaccination coverage in Canada, it is expected that as during September 2021 the Government of Canada will lift or significantly reduce COVID-related restrictions for fully vaccinated travelers from around the world.
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Great news for International Students is great news for Canada’s Economy
Pent-up demand and the trends summarized above (as well as many other data sources) confirm that, as soon as COVID-related travel restrictions are lifted in Canada, there will be a surge of International Students coming to Canada.
Canada’s economy will reap the benefits, as the expected boom in enrollments injects funds into Universities, and as International Students work while they study and spend money in Canada.
Estimates from the Government of Canada show that International Students contribute $22 Billion Dollars per year to Canada’s economy, and that they support more than 170 Thousand jobs. But they also have a much larger and permanent impact on the economy, which goes far beyond their graduation dates.
Research by the Government of Canada indicates that International Students who become immigrants make strong, significant contributions to the Canadian economy. More and more International Students are becoming Permanent Residents of Canada, changing from being students to fully undertake roles as workers, entrepreneurs, innovators, and consumers.
In 2019, 34% of those who became Permanent Residents in Canada through its Express Entry immigration stream did so by way of the Canadian Experience Class, aimed at International Students and Temporary Foreign Workers (TFWs) that have Canadian work experience.
We are Your Door to Canada!