A growing trend of imposing restrictions on international students has raised concerns about the potential economic impact on countries like Australia, Canada and the UK. While governments aim to curb immigration, they may be overlooking the significant cultural and economic benefits that international students bring.
In Australia, international students contributed over half of the country’s 1.5% GDP growth in 2023, worth AUD$48 billion (US$32.4 billion). However, with student visa approvals falling, this contribution is expected to ease. The government’s plan to impose overseas enrolment caps for universities may further dampen student demand.
In Canada, international students contributed CDN$31 billion (US$23 billion) to the economy in 2022, accounting for 1.2% of Canada’s GDP. A new rule barring spouses of international students from receiving an open work permit has already led to an 85% drop in study permits granted to Indian students in March 2024.
The UK has also seen a decline in international student applications and enrolments since removing the right of international student dependants to accompany students. This trend may result in almost a billion pounds in lost revenue in 2025.
Experts warn that these restrictions may have far-reaching consequences, including revenue losses, damage to the education sector and a decline in competitive, scientific and innovative potential. International students drive economic growth, contribute to service exports and fill workforce gaps. The Higher Education Policy Institute’s Nick Hillman has reported that in 2023, 58 countries (representing more than a quarter of all countries) were headed by a former alumnus of a UK university and 65 were led by a someone educated in the US.
As governments reconsider their immigration policies, they must carefully weigh the costs and benefits of restricting international student flows. The economic and cultural contributions of international students are too significant to ignore.
