Canada's economy contracted in the fourth quarter, coming in ‌below expectations, as manufacturers heavily dipped into their inventories to meet demand instead of producing fresh goods, Statistics Canada data showed on Friday. "Lower exports, particularly to the United States, were the main contributor to the slower rise in GDP in 2025," Statistics Canada said in its report. The companies had been actively ⁠adding to their inventories in the previous two quarters before the fourth quarter, Statistics Canada said. Statistics Canada revised the annualized third quarter growth downward to 2.4 per cent, from 2.6 per cent previously, and upwardly revised second quarter contraction to 0.9 per cent, from 1.8 per cent, on an annualized basis. While Canada's exports to its biggest trading partner, the U.S., have been declining, in ⁠the fourth quarter exports rose 1.5 per cent after increasing 0.9 per cent in the third quarter, on ⁠higher ⁠unwrought gold exports.

Source: CBC News February 28, 2026 11:29 UTC