07:12 AM EST, 12/18/2024 (MT Newswires) -- Canada's population grew 177,000 in Q3, or an annualized 1.7%, noted Bank of Montreal (BMO) after Tuesday's data.

The increase was the least in 2.5 years and down from the high water mark of 4.4% one year ago, said the bank.

The slowing reflects the federal government's curbs on temporary migrants, with the net increase of 47,000 contrasting with the record 318,000 in Q3 2023, stated BMO.

The number of temporary student migrants fell in the quarter but was offset by increases in work permits and asylum seekers.

Meantime, the increase in permanent migrants -- 124,000 -- was little changed.

Temporary migrants now account for 7.4% of the population and the government is aiming for 5% at the end of two years. That will be a challenge as asylum claims are likely to mount, pointed out the bank.

Still, population growth will continue to slow, according to BMO. This should relieve pressure on the housing supply, as the current population growth still exceeds long-run completions.