## Author's Summary
Economists caution that Canada's surprising Q3 GDP surge hides deeper economic frailties like weak domestic demand and rising contraction risks, despite beating forecasts. (148 characters)
## Key Economic Growth Overview
Canada's economy showed unexpectedly robust expansion in the third quarter. This growth far exceeded predictions, hitting an annualized 2.6 percent rise compared to the anticipated 0.5 percent. Yet experts highlight underlying issues beneath the surface.
## Economists' Caveats
Analysts warn the headline figures mask vulnerabilities in domestic spending. Imports dropped sharply by 2.2 percent—the largest fall since late 2022—while exports barely grew 0.2 percent. > "Headline growth was enhanced by a significant decline in imports, which concealed fundamental weaknesses in domestic demand as both households and businesses curtailed spending."
## Forward Risks
Preliminary October data points to a 0.3 percent GDP dip, signaling a shaky Q4 start. Specialists foresee hurdles from U.S. tariffs, trade uncertainties, and slowing population gains. Final demand stayed flat, with household outlays down 0.1 percent.
more
Forex Factory — 2025-11-28