Marc Miller said the Finance Department projected that the economy will continue to grow, even as Ottawa reduces the target for permanent foreign residents by 21 per cent next year in an effort to ease strains on housing and social services. (Bloomberg)

Talking point: The government is also drastically reducing the number of new temporary residents. The changes will cause population growth to stall for the next two years. Business leaders raised concerns that the policy is an over-correction to previously high immigration numbers, and could create labour shortages in industries ranging from hospitality to tech. GDP will, at most, grow one per cent over the next two years, Stephen Brown of Capital Economics forecasts, compared to his previous estimates of two per cent growth in 2024 and three per cent in 2025. Scotiabank economist Rebekah Young expects the cuts to lead to “flatlining growth.” Even a fractional decline in GDP, she said, will have a big impact on the economy.