Canada GDP contracts 0.6 percent in the fourth quarter
Canada's economy shrank at an annualized 0.6 percent rate in the fourth quarter. Annual growth for 2025 slowed to 1.7 percent, the slowest pace since 2020.
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The economy of Canada experienced an unexpected contraction in the fourth quarter of 2025, as manufacturers significantly reduced their inventories to meet market demand rather than increasing production. According to data released by Statistics Canada on Friday, the gross domestic product (GDP) shrank at an annualized rate of 0.6% during the October-to-December period. This performance fell well short of analyst expectations, which had anticipated the economy to remain flat.
