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GDP Revisions in Canada Likely Result in "Less-Bad" Productivity, Says BMO

BY MT Newswires | ECONOMIC | 12/02/25 08:32 AM EST

08:32 AM EST, 12/02/2025 (MT Newswires) -- A big undercurrent in the latest Canadian gross domestic product release was "hefty" upward revision to real growth in the prior three calendar years, totalling 1.4 percentage points, said Bank of Montreal (BMO).

This didn't come out of the clear blue sky, as earlier provincial data had flagged the big switch, noted the bank.

One way to look at it, the average quarterly growth rate in 2024 is now pegged at 3.1%, up from 2.3% previously, a really different picture of the economy for last year, stated BMO.

A few side benefits include the fact that Canada's debt/GDP ratio just dropped by a percentage point, pointed out the bank.

As well, when productivity data is released on Wednesday, look for some sizeable upward revisions there too, as the labor input wasn't changed, added BMO. With output per hour likely to have risen 0.5% in Q3 -- not annualized -- that will lift the yearly rate to around 0.75, which isn't great, but better than earlier reported declines through 2022 and 2023.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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