FX.co ★ Canadian Economy Rebounds in Q3

In the third quarter of 2025, Canada's GDP experienced a robust increase of 0.6% quarter-over-quarter, recovering from a revised 0.5% decline in the previous quarter. This growth was largely fueled by an improved trade balance, as imports decreased by 2.2% while exports experienced a modest uptick of 0.2%. Capital investment saw a boost, primarily due to a 2.9% rise in government spending on capital projects, significantly influenced by an extraordinary 82.0% surge in expenditures on weapon systems. There was also appreciable growth in government investments in non-residential infrastructure, particularly in institutional buildings such as hospitals. Conversely, business capital investment remained mostly steady. Household consumption saw a slight decline of 0.1%, and government spending fell by 0.4%, coupled with a slowdown in inventory accumulation. On an annualized basis, the GDP grew by 2.6%, making a notable recovery from a revised 1.8% contraction in the second quarter, and surpassing expectations of a 0.5% increase.