In Canada, demographic attention has been rightly focused on the massive influx and then capping of non-permanent residents, said Bank of Montreal (BMO).
However, a collapse in natural population growth has been unfolding in the background, noted the bank.
Net births are expected to turn negative for the first time ever in 2028, stated BMO. That is, more Canadians will begin to pass away than will be replaced with new babies.
According to the bank, there are many causes and many longer-term implications. Among the latter:
Slower labor force and potential economic growth.
Lower break-even job growth rates.
A role for Artificial Intelligence to drive more productivity.
Mounting stress on social security funding.
An evolving housing demand curve.