International Students Boost $31 Billion into Canada’s Economy!

Key Points:

1. International education in Canada contributed 1.2% to the nation’s GDP in 2022.
2. The number of international students in Canada increased by 61% from 2016 to 2022, reaching 844,444.

According to a recent update by the Canadian government, international education significantly boosted the Canadian economy in 2022, contributing 1.2% of the nation’s GDP. International students spent an estimated $37.3 billion on tuition, accommodation, and discretionary items despite the offset from Canadian scholarships and bursaries.

This expenditure supported approximately 246,310 jobs and generated $7.4 billion in tax revenue, as highlighted by the report from Roslyn Kunin and Associates, an Economic Development Agency in Vancouver, Canada. The report encompasses both long-term and short-term students at schools, colleges, and universities, emphasising the crucial role international education plays in the globalization of Canada’s economy. It noted that international education helps Canada thrive in a rapidly changing and competitive global environment.

Between 2016 and 2022, the number of international students in Canada surged by 61%, from 523,971 to 844,444. “The year 2022 saw the highest ever number of long-term students in Canada, after a dip in 2020 and 2021 due to travel restrictions brought on by the Covid-19 pandemic,” the report stated. The report further highlighted that the contributions of international students to Canada’s economy are growing, with overall spending more than doubling from $15.5 billion in 2016 to $37.3 billion in 2022, representing an annual increase of 15.7%.

In 2022, Canada hosted 844,444 international students, with 769,515 categorised as long-term students. Ontario attracted the highest number of international students in Canada, housing 432,272. This accounts for over half (51%) of the total population of international students in Canada. British Columbia followed with 186,886 students, making up 22% of the international student population, highlights the international students in Canada news.

Prince Edward Island, despite having only 4,491 international students, recorded the highest percentage increase in study permit holders, with an astonishing 1,800% rise from 2000 to 2022. Conversely, Nunavut and the Northwestern Territories were the last popular destinations, hosting only five and 35 international students, respectively. 

India remained the top source country, with 319,130 study permit holders in 2022, marking a 47% year-on-year increase. Following India was the Philippines, with 32,455 study permit holders, up 73%, 60%, and 54% year-on-year, respectively. However, the report noted potential changes in these figures, citing a sharp drop in study permits in March 2024 after Canada imposed a cap on international student study permits. Additionally, new data indicated that African students are consistently less likely to have their visas approved compared to their global peers.

Conclusion

The economic impact of international education in Canada has been substantial, with international students contributing significantly to the country’s GDP, job market, and tax revenue. The surge in international student numbers and their increasing expenditure underscores the critical role of international education in Canada’s economic and cultural landscape. While Canada remains a top destination for students from countries like India and the Philippines, challenges such as visa approval disparities and recent policy changes could influence future trends. Nevertheless, the continued growth and globalization facilitated by international education highlight its importance to Canada's thriving economy. Stay updated with more such student-related information with amber news.