Canada's 2025 GDP Grows at Slowest Pace in Five Years; January Signals Flat GDP

08:51 AM EST, 02/27/2026 (MT Newswires) -- Canadian real gross domestic product rose 0.2% month over month in December, driven by increases in both services-producing and goods-producing industries, said the country's statistical agency on Friday.

December's GDP growth beat a 0.2% month-over-month consensus contraction provided by Scotiabank.

Services-producing industries drove the expansion in December, rising 0.2% month over month, led by increases in wholesale trade, public sector and transportation and warehousing, noted Statistics Canada. Goods-producing industries increased 0.2% month over month, driven by increases in manufacturing and utilities. Overall, 11 of the 20 industrial sectors grew in December.

Real GDP by industry rose 1.6% in 2025, up for a fifth year in a row, though at the slowest pace in five years, added StatsCan. Both services-producing industries (+1.6% year over year) and goods-producing industries (+1.5%) increased last year, with 16 out of 20 industrial sectors expanding.

Advance information indicates that real GDP was "essentially unchanged" month over month in January, according to the Ottawa-based agency. Increases in mining, quarrying, and oil and natural gas extraction and finance and insurance were offset by decreases in manufacturing and real estate and rental and leasing.

Real GDP declined 0.2% quarter over quarter in Q4 2025, after rising 0.6% quarter over quarter in Q3. The Q4 decrease was due to withdrawals of business inventories following inventory accumulations in Q3. Offsetting some of the decline was higher exports, household spending and government capital investment.

For Canada, GDP and Income and Expenditure Accounts measure the production of goods and services in the Canadian economy as well as the incomes arising from this production and expenditure on the production. GDP represents the unduplicated value of goods and services produced during the reference period and are available for domestic consumption, investment or export.

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