The Canadian economy shrank by a greater-than-expected 0.3 per cent in October, the largest drop in almost three years, on weakness in both the goods and services sectors, official data showed on Tuesday. Analysts had forecast that growth would dip by 0.2 per cent from September as the economy continues to adjust to U.S. trade measures. Last month, Statistics Canada reported 0.2 per cent GDP growth for September, and Canada avoided a technical recession largely due to a surge in defence spending. Governor Tiff Macklem said on Dec. 10 that he expected GDP growth to be weak in the fourth quarter. "That will close out a very choppy year for Canadian growth in still-choppy fashion."

Source: CBC News December 23, 2025 14:50 UTC