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Canada population revision lifts growth outlook, RBC says

RBC says Statistics Canada’s data revision removes signals of negative growth, leaving Canada’s population up 0.5% year over year in Q2.

Reported · Written up by our desk · Central Banks

FXStreet, citing Royal Bank of Canada economist Rachel Battaglia, said 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.

Battaglia said the revision softens recent per capita GDP performance, but also points to more demographic headwinds ahead, as future GDP and employment growth are likely to slow when population gains moderate.

She added that the revisions could affect the outlook for total GDP growth and employment growth, because both are functions of population growth, and more modest population declines in earlier quarters could imply more aggressive slowdowns later.

Even so, Battaglia told FXStreet that the broader economic demographic narrative does not change materially, with Canada still facing structural headwinds, though the population no longer appears on track to decline outright for the first time on record in 2026.

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