FX.co ★ Canada GDP Seen Higher in September

In September 2025, Canada's GDP experienced a modest growth of 0.1% from the preceding month, resulting in a 0.1% increase for the third quarter, as suggested by preliminary estimates. This slight rise helped counterbalance the 0.3% downturn in August, which had previously been revised from an initial estimate indicating stagnation. This represented the steepest monthly decline in Canada's economy since December 2022. The pronounced decrease was largely due to heightened sensitivity to the trade tensions between Canada and the United States, coupled with elevated interest rates imposed by the Bank of Canada (BoC). In terms of industry performance, goods-producing sectors saw a 0.6% decline, driven particularly by a 2.3% decrease in utility production and a 0.7% downturn in mining, quarrying, and oil and gas extraction, primarily attributable to the fall in their global benchmark prices. Simultaneously, service output dipped by 0.1%, with significant reductions of 1.7% in transportation and warehousing, and 1.2% in wholesale trade, though these were somewhat mitigated by a 0.9% increase in retail trade. Comparing year-over-year figures, Canada's GDP had expanded by 0.7% in August.