Canada GDP

Underlying details healthy despite weak headline. Driven by a drawdown in inventories, Canada’s economy contracted by a 0.6 per cent annualized rate in the final quarter of 2025 — weaker than the consensus expectation for a 0.2 per cent decline. Despite the soft headline print, the underlying composition of growth was more constructive. Household spending rose 1.7 per cent, underpinned by a 3.6 per cent increase in services consumption, suggesting domestic demand remained firm.