International students have become a crucial part of Canada’s economy, contributing a staggering $37.3 billion in 2022. This influx of spending has resulted in a $30.9 billion boost to the country’s GDP, making up 1.2% of the total economic output. British Columbia, a popular choice for international students, has seen a significant economic impact, second only to Ontario.
In the past two decades, Canada has witnessed a significant increase in international student enrollment. The number of long-term international students has surged by 30.8% from 2000 to 2022, with over 807,000 students enrolled in 2022. India has emerged as the largest source country, with a 47% increase in the number of Indian students in 2022. Other countries such as the Philippines, Hong Kong, Nigeria, and Colombia have also shown substantial growth in enrollment, highlighting Canada’s attractiveness as a study destination.
International students in British Columbia have played a pivotal role in the province’s economy, with each student spending an average of $49,500 annually on tuition, housing, living expenses, and discretionary spending. This expenditure not only directly impacts the economy but also creates additional economic activity through the consumption of goods and services. Local suppliers and service providers that support educational institutions also benefit from the demand generated by international students. Overall, international student spending has supported over 361,000 jobs across Canada, with British Columbia being a major contributor.
In 2022, the spending of international students has generated $7.4 billion in tax revenue, including indirect taxes like sales, property, and personal income taxes. These taxes play a crucial role in supporting public services across the country, benefiting all Canadians. Additionally, the economic contributions of international students extend to Canada’s trade balance, with their spending accounting for 23.1% of the total service exports and 4.8% of merchandise exports in 2022. This contribution rivals traditional export sectors like wood products and electronic machinery, underlining the growing significance of international education to Canada’s global standing.
The growth of international students in Canada has been remarkable, with spending more than doubling from $15.5 billion in 2016 to $37.3 billion in 2022, representing a 15.7% annual increase. This growth is attributed to the rising number of students and the increasing living and tuition costs in the country. The overall economic impact of international students has also seen substantial growth, supporting 361,000 jobs and generating $7.4 billion in tax revenue by 2022.
Despite being often overlooked, international students play a vital role in Canada’s economy, supporting jobs, generating tax revenue, and boosting GDP. As the number of international students continues to rise, particularly in British Columbia, their economic influence will remain a cornerstone of Canada’s financial landscape, solidifying the country’s position as a global leader in education and trade.
