Canada's economy rebounds in third quarter with 2.6% annualized GDP growth

Canada’s Economy Rebounds in Third Quarter

GDP Growth Overview

Statistics Canada reported Friday that real gross domestic product (GDP) increased by 2.6 percent on an annualized basis in the third quarter of 2025. The figure exceeded earlier expectations and indicates a stronger rebound in economic activity following a slower first half of the year.

Monthly GDP Change

The agency also noted that real GDP rose 0.6 percent in October compared with the previous month. This increase reflects widespread gains across several sectors, particularly manufacturing, retail trade, and construction.

Sector Performance

Manufacturing: A steady recovery driven by machinery, equipment, and vehicle production.
Retail trade: Growth supported by rising consumer spending and improved supply chains.
Construction: Output expanded due to residential housing projects and infrastructure investments.
Energy production: Continued stability despite lower global oil prices.

Broader Economic Context

StatCan highlighted that domestic demand improved as household consumption and business investment gained momentum. However, exports showed mixed performance, influenced by global trade pressures and regional uncertainties.

“The Canadian economy displayed encouraging resilience in the third quarter, supported by strong job markets and renewed consumer confidence,” the agency’s report said.

Outlook

Analysts predict modest but sustained growth through the end of 2025, though inflationary pressures and potential interest rate adjustments remain important variables to watch.

Author’s summary: Canada’s GDP grew 2.6% in Q3 2025, driven by broad sectoral gains and strong domestic demand, signaling a steady rebound in the nation’s economic momentum.

CTV News — 2025-11-28