Canada’s economic growth cooled in the fourth quarter of 2025, with GDP expanding by 0.72% year-on-year, down from a 1.58% gain recorded in the third quarter of 2025. The latest figures underscore a clear loss of momentum as the economy moves into 2026.
On a year-over-year basis, the current reading reflects how the fourth quarter of 2025 compares with the same period a year earlier, while the previous figure measured the third quarter’s performance against its year-ago counterpart. The deceleration in growth suggests that the Canadian economy is facing increasing headwinds, with the pace of expansion more than halved between the two consecutive quarters.
The data, updated as of 27 February 2026, will likely sharpen the focus of policymakers, investors, and businesses on the underlying drivers of the slowdown and on the implications for interest rates, fiscal planning, and corporate earnings in the coming quarters.
