Statistics Canada says the financial system capped off a risky 12 months with a contraction within the ultimate quarter of 2025.
The company says actual gross home product declined 0.6 per cent on an annualized foundation within the fourth quarter, falling wanting expectations from the Financial institution of Canada and most economists for flat development.
Statistics Canada says the principle purpose for the contraction was companies drawing down their inventories — in different phrases, promoting off items or supplies that weren’t reproduced within the quarter.
The financial system swung backwards and forwards between positive aspects and losses each quarter final 12 months as sharp modifications in exports tied to U.S. tariffs drove volatility in GDP knowledge.
Statistics Canada says there was some restoration in exports by the tip of the 12 months however commerce failed to totally get better from the sharp decline within the second quarter when tariffs took full impact within the financial system.
The company says actual GDP was up 0.2 per cent in December and rose 1.7 per cent in 2025 total, marking the slowest tempo of annual development since 2016 outdoors the COVID-19 pandemic.
