The economic impact of Canadians of foreign origin: fostering global growth
Canada has earned a reputation as a diverse and multicultural nation, attracting individuals from around the world to build their lives here. Among these Canadians of foreign origin, their contributions go beyond Canada’s borders, fostering connections with their countries of origin while actively supporting the Canadian economy.
With this rich mix of cultures, Canada is a place of economic growth and opportunity, in large part because of what its foreign-born citizens contribute.
Statistics show that immigration has shaped Canada’s population and economy in major ways over the years. Immigrants make up a large and growing part of Canada’s population, from many countries around the world.
These Canadians of foreign origin bring valuable skills, expertise, and perspectives. They enrich the labour market, make property investments, and driving innovation across many industries.
This article highlights how Canadians of foreign origin contribute to the economic activity of their home countries, showcasing the important role they play in fostering development and creating opportunities.
Remittances
One of the most significant ways Canadians of foreign origin contribute to their home countries is through remittances. Individuals living abroad send remittances, which are funds transferred back to their countries of origin. According to the World Bank, Canada consistently ranks among the top countries for remittance outflows.
23.0% of people in Canada were or had been immigrants in 2021, the largest share among G7 countries.
Source: Statistics Canada, 2021 Census (released 2022-10-26)
These financial transfers provide vital support to families and communities in the home country, often serving as a lifeline for many. Remittances help reduce poverty, improve education and healthcare, and fund businesses, thereby promoting economic growth.
Entrepreneurship and investment
Canadians of foreign origin also play a key role in fostering entrepreneurship and investment in their countries of origin. Many individuals who have migrated to Canada bring back valuable skills, knowledge, and financial resources gained during their time abroad.
They often use this expertise to start businesses or invest in existing ventures in their home countries, creating job opportunities, driving innovation, and stimulating economic activity.
Trade and export
With their cultural, linguistic, and social connections, Canadians of foreign origin can act as bridges for increased trade and export between Canada and their home countries. These individuals possess unique insights into both markets, enabling them to facilitate business collaborations.
69.4% of recent immigrants did not report English or French as their mother tongue in 2021.
Source: Statistics Canada, 2021 Census (released 2022-10-26)
They may serve as intermediaries, linking Canadian businesses with opportunities in their home countries, and vice versa. By facilitating trade and export, they contribute to economic diversification, market expansion, and the growth of both countries’ economies.
Knowledge and skills transfer
Another major contribution of immigrants to Canada is the transfer of knowledge and skills. Many who migrate to Canada acquire advanced education, specialized training, and work experience in various sectors.
When they return to their home countries, they bring back this expertise, which can significantly boost local industries, support capacity building, and promote technological advancements.
The transfer of knowledge and skills helps close the development gap between countries, ultimately benefiting the global economy.
Tourism and cultural exchange
Canadians of foreign origin also contribute to the economy of their home countries through tourism and cultural exchange. As proud ambassadors of their heritage, they often promote their home countries by organizing cultural events, participating in trade fairs, and encouraging tourism.
More than 450 mother tongues were reported in the 2021 Census.
Source: Statistics Canada, 2021 Census (released 2022-10-26)
By attracting visitors from Canada and elsewhere, they generate revenue for local businesses, hotels, restaurants, and other tourism-related sectors, helping to strengthen the local economy and showcase their country’s unique culture.
The diverse potential of Canadians of foreign origin for global economic empowerment
In summary, Canadians of foreign origin make significant economic contributions to both Canada and their countries of origin.
Through remittances, entrepreneurship, investment, trade facilitation, knowledge transfer, and cultural exchange, they play a key role in driving economic growth, creating jobs, and improving life in their home countries.
Recognizing and drawing on the potential of this diverse group can lead to mutually beneficial outcomes, reinforcing the positive impact of migration on both the Canadian and global economies.
