Real gross domestic product (GDP) declined 0.4% in the second quarter of 2025, following a 0.5% gain in the first quarter. The contraction in the second quarter was driven by significant declines in the export of goods, as well as decreased business investment in machinery and equipment. These declines were tempered by faster accumulations of business inventories, higher household spending and lower imports of goods. On a per capita basis, real GDP was down 0.4% in the second quarter, after an increase of 0.4% in the previous quarter. Final domestic demand, which represents total final consumption expenditures and ... (full story)

The Canadian economy contracted for the first time in nearly two years as the trade war with the US pinched exports and business investment. Canada’s gross domestic product shrank at a 1.6% annualized pace in the second quarter, Statistics Canada reported Friday from Ottawa. That’s the biggest decline since the Covid-19 pandemic and the first contraction in nearly two years. While roughly in line with the Bank of Canada’s forecasts, it’s a worse print than was expected in a Bloomberg survey of economists, which had forecast a 0.7% decline. The loonie tumbled to a session low versus the US dollar after the report, ... (full story)