(Feb 28): The Canadian economy ended the year on a softer note as a sharp decline in business inventories drove down real gross domestic product (GDP) by an annualised 0.6% in the fourth quarter (4Q). The decline in business inventories was partially offset by increased household spending, exports and government capital spending, Statistics Canada reported on Friday. Economists surveyed by Bloomberg were expecting a 0.2% annualised decline over the last three months of 2025, while the Bank of Canada projected flat growth. A preliminary estimate suggests real GDP remained unchanged in January, after increasing by 0.2% in December on a monthly basis, slightly stronger than economists’ estimate of 0.1%. St-Arnaud added a bump in exports suggests the economy was on a better footing to end 2025.

Source: The Edge Markets February 27, 2026 16:21 UTC