Canada’s population declined by roughly 102,000 people in 2025, marking the first annual drop on record, driven by sharp reductions in non-permanent residents. Federal policy under the 2026–2028 Immigration Levels Plan has maintained permanent resident targets at 380,000 while cutting new temporary resident arrivals to 385,000 in 2026, a roughly 43 percent reduction from prior levels. Statistics Canada data show continued quarterly losses into 2026, including a 55,000 drop in the first quarter alone, fueled by fewer international students, tighter work permit rules, and net outflows of temporary residents. These measures, aimed at bringing the temporary population below 5 percent of the total by the end of 2027, have produced sustained demographic contraction that traders view as likely to exceed the prior year’s record decline.