## Canada’s Strong Q3 Economic Growth Canada’s economy expanded at an annualized rate of 2.6 percent in the third quarter of 2025, surpassing analysts’ expectations and recovering from a decline recorded in the second quarter. ### Growth Drivers According to the report, the key contributors to this rebound were increased consumer spending and a rise in exports. Service industries, including transport and retail, showed notable gains, reflecting improved domestic demand. Business investments remained steady, while housing-related activity continued to slow compared to earlier quarters. ### Expert Commentary Economists described the results as a “surprise rebound” given previous forecasts projected much weaker growth or near stagnation. One analyst noted that “the resilience of consumer spending continues to support Canada’s economy despite global uncertainty.” ### Economic Context Inflation pressures and high borrowing costs continued to challenge households, yet sustained job growth and stronger exports helped offset weaker sectors. The report also highlighted that underlying trends remain “noisy,” suggesting future revisions or moderation in upcoming quarters. > “This is a very noisy report, with both strong and weak indicators mixed throughout,” one economist commented, adding that policymakers will likely monitor subsequent data closely. *** **Author’s Summary:** Canada’s economy grew faster than expected in Q3 2025, driven by spending and exports but tempered by high costs and uneven sectoral performance.

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Yahoo! Finance Canada — 2025-11-28