Canada's population has already recorded its first annual decline on record in 2025, driven by federal policy shifts under the 2025–2027 and 2026–2028 Immigration Levels Plans that capped permanent resident admissions near 380,000 annually while sharply reducing temporary resident arrivals to 385,000 in 2026. These measures, combined with permit expirations and transitions, have produced sustained net outflows of non-permanent residents, resulting in consecutive quarterly contractions through the first quarter of 2026. Statistics Canada projections and early data indicate continued negative or near-zero growth for the full year, exceeding prior declines amid historically low natural increase and the explicit target of reducing the temporary resident share below 5 percent. Traders price the 2026 drop as likely the largest on record given the scale and persistence of these official restrictions.