## Unexpected GDP Surge Draws Concern Statistics Canada reported that Canada’s economy expanded by 2.6% in the third quarter, outperforming forecasts and sidestepping a potential recession. The stronger-than-expected GDP growth reflected a rebound in consumer spending and solid export performance, helping to offset earlier signs of economic slowdown. ## Economists Warn of Underlying Risks While the headline number points to resilience, several economists have cautioned that the growth may conceal emerging vulnerabilities. Rising household debt, elevated interest rates, and softer business investment could weigh on the economy in the coming months. Analysts suggest that much of the recent spending was fueled by temporary factors rather than sustainable income gains. > “This growth is not necessarily a sign of lasting strength but rather a snapshot boosted by short-term momentum,” said one senior economist. ## Policy and Market Reactions Prime Minister Mark Carney met with key economic advisors to discuss the implications of the data, emphasizing the need for balanced policy responses. Markets reacted positively to the initial release, though expectations for further rate adjustments by the Bank of Canada remain cautious. ## Outlook With domestic consumption showing early signs of fatigue and global demand uncertain, economists agree that Canada’s path forward will depend on maintaining productivity and keeping inflation anchored. > “Policymakers should avoid overinterpreting this quarter’s numbers; it’s a temporary reprieve, not a broad turnaround,” another expert noted. *** **Author’s summary:** Canada’s better-than-expected GDP growth eased recession fears but raised warnings among economists about sustainability and hidden economic pressures.

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Financial Post — 2025-11-28