## Author's Summary
Canada's economy surged with 2.6% annualized GDP growth in Q3 2025, fueled by sharp rises in military spending and housing, offsetting prior trade declines amid U.S. tensions. (148 characters)
## Economic Rebound Overview
Canada's gross domestic product expanded at a 2.6% annualized rate in the third quarter, marking the quickest growth since late last year. This surge reversed a 1.8% drop from the prior quarter, largely due to shifts from exports toward housing and public outlays. Trade data faced complications from U.S. government shutdowns, yet exports held steady.
## Key Growth Drivers
- Military investments leaped 82%, boosting overall government capital spending by 2.9%.
- Housing saw a 6.7% annualized uptick in residential investments after stagnation.
- Exports of crude oil edged higher (+0.2%), while imports fell (-2.2%), aiding the trade balance.
> The Canadian economy rebounded sharply from the initial damage of the trade war as the country's growth drivers shifted to housing and government spending.
Household spending dipped slightly (-0.1%), and business investments stayed flat, highlighting reliance on public and residential sectors.
more
The Detroit News — 2025-11-28