Canadian Economy Rebounds by More Than Expected

Canada’s Economic Growth Surpasses Forecasts

Canada’s economy showed a stronger-than-expected recovery in the latest quarter, according to data released in Ottawa. The rebound was driven largely by improvements in net trade and a revival of export performance after a period of contraction earlier this year.

Key Drivers of the Rebound

Net trade: Exports rose noticeably, while imports weakened slightly, helping to lift overall GDP growth.
Consumer spending: Although household spending remained cautious, it stabilized after several months of declines amid inflationary pressures.
Business investment: Some improvement was noted in nonresidential construction and equipment expenditures, reflecting cautious optimism among businesses.

Policy and Economic Outlook

Economists suggest the surprising strength may influence the Bank of Canada’s next interest rate decisions. While inflation continues to moderate, policymakers remain attentive to credit conditions and household debt levels. Further rate cuts are not guaranteed, as central bankers weigh ongoing global uncertainty and domestic demand trends.

“The data show the economy still has resilience despite tighter financial conditions,” said an Ottawa-based analyst. “But growth is fragile, and future momentum will depend heavily on consumer confidence.”

Author Summary

Canada’s economy unexpectedly accelerated last quarter thanks to stronger exports and trade gains, hinting at resilience but leaving policymakers cautious about inflation and growth sustainability.

The Wall Street Journal — 2025-11-28

Canada’s Economic Growth Surpasses Forecasts

Key Drivers of the Rebound

Policy and Economic Outlook

Author Summary

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