International students boosted the Canadian economy by $31 billion in 2022, according to a recent report by Global Affairs Canada (GAC). This massive contribution, which accounts for 1.2% of Canada’s GDP, indicates the fundamental impact of international education on the nation’s economic landscape.
Economic contributions and employment support
According to a report by professional analysts Roslyn Kunin and Associates, international students in Canada spent about $37.3 billion on tuition, accommodations and discretionary items in 2022. This expenditure supported the equivalent of 246,310 full-time jobs and generated $7.4 billion in tax revenue. The combined direct and indirect GDP contribution from these expenditures amounted to CDN$30.9 billion, equivalent to nearly a quarter of Canada’s service exports for the year.
Education exports, which is measured by the total value of international students in Canada, accounted for just over 23% of Canada’s total service exports in 2022. This placed education among Canada’s top export sectors, surpassing the value of exports in several key product categories such as wood and wood products (CDN$25.7 billion), fertilisers (CDN$17.9 billion), and electrical or electronic machinery and equipment (CDN$19.2 billion). Overall, international student spending that year was equivalent to about 4.8% of the total value of Canada’s merchandise exports.
Growth in international student numbers
The number of international students in Canada surged by an impressive 61% from 2016 to 2022, growing from 523,971 to 844,444. This growth trend has been consistent over the years, as previous iterations of the report published in 2008 (280,170), 2010 (328,402), 2014 (438,157), 2015 (457,828), and 2016 (523,971) also noted steady increases in international student numbers. The year 2022 saw the highest number of long-term students ever recorded, following a temporary decline during the COVID-19 pandemic. This growth trend continued into 2023 with foreign enrolment in Canada increasing by 29% year-over-year.
Distribution of international students
Ontario hosted the largest number of international students at 432,272, representing over half (51%) of the total international student population in Canada. British Columbia followed with 186,886 students (22%), while Quebec accounted for another 12% with 102,403 students. Prince Edward Island, despite having only 4,491 international students, recorded the highest percentage increase in study permit holders since 2000 at over 1,800%. In contrast, Nunavut and the Northwest Territories were the least popular destinations, with just five and 35 students, respectively.
Other provinces and territories also contributed to Canada’s international student population: Alberta (44,766), Manitoba (21,765), Saskatchewan (21,200), Nova Scotia (13,279), New Brunswick (11,157), Newfoundland and Labrador (6,000) and Yukon (185).
This detailed breakdown highlights the varying levels of international student presence across Canada, with concentrations in major provinces and notable contributions also from smaller territories.
Key source countries
India emerged as Canada’s top sending country, with 319,130 study permit holders in 2022, marking a 47% increase from the previous year. Other significant contributors included the Philippines, which saw a 112% increase to 32,455 students, and Hong Kong, Nigeria and Colombia, which recorded increases of 73% (13,100 students), 60% (21,660 students) and 54% (12,440 students), respectively. These figures highlight the diverse origins of Canada’s international student population and their growing numbers.
Average expenditures for international students
The GAC analysis attributes 97.7% of the economic impact to long-term students—those enroled in programs lasting six months or more. Average annual per-student expenditures varied by level of study: K-12 students spent an average of $30,200, college students spent $42,800, university students $53,800 and other categories averaged $37,400. Overall, for long-term students across all levels of study, the average per-student expenditure—including tuition fees, other fees, books, accommodations, meals, transportation and discretionary spending, but excluding spending from visiting family and friends—was estimated to be $49,500 in 2022.
The GAC estimates suggest that the economic impact of international students has expanded rapidly over the past decade, with overall student spending more than doubling from CDN$15.5 billion in 2016 to CDN$37.3 billion in 2022, for an average annual increase of nearly 16%.
Future outlook
This upward trend persisted in 2023, a year following the current GAC analysis, during which foreign enrolment in Canada increased by 29% year-over-year. Even a rough approximation of the GAC numbers from the previous year would indicate that the contribution of international students to the Canadian GDP would approximate CDN$40 billion (US$30 billion) in 2023. However, challenges remain following the imposition of a study permit cap on international students.
Conclusion
International students are an imperative driver of Canada’s economic growth, contributing greatly to its GDP and supporting thousands of jobs. As Canada navigates future challenges, the sustained influx and support of international students will be crucial to maintaining and enhancing this positive economic impact.
To know more about opportunities available for international students and updates about education in Canada, check out our blog or reach out to our North American team at gspna@globalstudypartners.com.
