Institution: Canada’s population growth slowdown hits consumer company demand

Golden Ten Data reported on May 23 that Thiago Figueiredo, a macro strategist at Desjardins, stated that the sudden tightening of Canada's regulatory policies on temporary residents and foreign students has exposed a weakness in the country’s domestic consumer businesses. For many years, rapid population growth provided an artificial boost to corporate profits, but this advantage has now turned into a macro risk. He pointed out that sales in domestic low-cost essentials have dropped significantly, which is closely related to this structural slowdown in population growth. Figueiredo specifically mentioned the low-cost dining and student-related industries, saying, “This is likely exactly where you’ll see more consumption affected among the student population. But I do think this will still be a negative factor facing us next year.”