A recent analysis conducted by Global Affairs Canada (GAC) reveals that international students made a substantial economic impact on Canada in 2022, with their expenditures contributing CDN$30.9 billion (US$23 billion) to the nation’s GDP. This figure underscores the pivotal role of international education as a key economic driver for the country. The study claims that foreign student spending, which will make up more than 23% of all service exports from Canada in 2022, has also helped the country’s economy. This sector alone contributed 1.2% to Canada’s overall GDP, highlighting its significance in the national economic landscape.
In a notable comparison, the total value of international student expenditures in Canada, amounting to CDN$37.3 billion, surpassed the export values of various Canadian products such as wood products, fertilizers, and electrical machinery. This spending constituted approximately 4.8% of Canada’s total merchandise exports for the year. It is estimated that international student spending sustained 361,230 jobs in 2022, emphasizing the sector’s role in employment generation.
The report also highlighted significant growth in the number of study permit holders over the past two decades, with Ontario emerging as the primary destination for international students, hosting over half of the country’s total in 2022. Prince Edward Island saw the highest percentage increase in study permit holders, reflecting a trend of diverse regional growth. The analysis attributed a significant portion, approximately 97%, of the economic impact to long-term students enrolled in programs lasting six months or more. Notably, India emerged as a key driver of growth in recent years, with a notable 47% increase in study permit holders from 2021 to 2022.
Over the decade leading up to 2022, international student spending more than doubled, growing from CDN$15.5 billion to CDN$37.3 billion. This rapid expansion underscores the sector’s dynamic contribution to Canada’s economy, with an average annual growth rate nearing 16%. Looking ahead, the trend of increasing foreign enrolment in Canada continued into 2023, suggesting a further boost to the economic contribution of international students. Extrapolations based on previous trends indicate that international students’ economic impact on Canada’s GDP could approach CDN$40 billion (US$30 billion) in 2023.
The findings underscore the vital role of international education in Canada’s economic strategy, positioning the country as a global leader in attracting and supporting international students. As the sector continues to evolve, its contributions are expected to play an increasingly pivotal role in Canada’s economic growth and resilience. The Global Affairs Canada report offers a thorough overview of the revolutionary effect that international students have had on Canada’s economy, stressing the sector’s present successes as well as its promising future.
