Canada’s real GDP rose 1.9 percent in 2025, slowing from 2.1 percent in 2024, Statistics Canada reported in its provincial and territorial economic accounts. Growth was driven by household consumption, followed by government spending and capital investment, while lower goods exports and withdrawals of business non-farm inventories held it back. Newfoundland and Labrador grew fastest among the provinces at 4.3 percent, followed by Prince Edward Island at 3.5 percent, Alberta at 3.3 percent and Saskatchewan at 3.1 percent, with Quebec slowest at 1.0 percent and Ontario at 1.8 percent. The Northwest Territories, down 1.7 percent, was the only jurisdiction to contract.
Household spending rose 2.0 percent, the slowest rate since the pandemic decline in 2020, led by financial services and rent, while spending on education fell as international student numbers declined and spending abroad fell as travel to the United States slowed. The household saving rate rose to 4.4 percent from 3.7 percent. International exports fell 1.1 percent and imports fell 0.4 percent, and Statistics Canada said trade between provinces and territories rose as a share of total trade as international trade, particularly with the United States, declined under tariffs and global uncertainty. Compensation of employees rose 4.8 percent and corporate incomes rose 3.2 percent.