Canada: Revised demographics reshape growth view – RBC
Royal Bank of Canada economist Rachel Battaglia explains that Statistics Canada’s upward revision to population data has erased earlier signs of negative growth and now shows Canada’s population rising 0.5% year-over-year in Q2.
RBC economist Rachel Battaglia explains how Statistics Canada's population data revisions have softened signs of negative growth, showing Canada's population expanding by 0.5% year-over-year in Q2. The adjustments lower per-capita GDP performance and suggest future GDP and employment growth will slow as population gains moderate.
Potential impacts include more aggressive slowdowns in GDP growth and employment, as both depend on population growth. Despite the changes, Canada's overall demographic headwinds remain significant, with population growth still tracking the smallest increase on record. Demographic estimates are more prone to revisions than usual, shifting focus to more stable economic indicators like the unemployment rate, which has shown improvement in 2026. GDP data is also regularly revised, including annual benchmark revisions expected in November.
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