{"id":312901,"date":"2025-11-28T19:53:12","date_gmt":"2025-11-28T19:53:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/312901\/"},"modified":"2025-11-28T19:53:12","modified_gmt":"2025-11-28T19:53:12","slug":"canada-avoids-recession-as-gdp-climbs-in-the-3rd-quarter-national","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/312901\/","title":{"rendered":"Canada avoids recession as GDP climbs in the 3rd quarter – National"},"content":{"rendered":"

The Canadian economy managed to avoid a recession<\/a> in the third quarter, according to the latest report from Statistics Canada<\/a>, which says Gross Domestic Product, or GDP<\/a> climbed 0.6 per cent from July through September.<\/p>\n

\"\"<\/p>\n

This follows the second quarter<\/a>, which saw the economy\u2019s productivity decline by 0.5 per cent on average from April through June.<\/p>\n

GDP rebounded 2.6 per cent year-over-year in the third quarter after falling 1.8 per cent in the second quarter.<\/p>\n

GDP is generally measured by adding up the total value of all goods and services produced within a country\u2019s borders in a given period.<\/p>\n

Most economists and financial analysts define a technical recession as two straight quarters, or a six-month stretch, where the economy shrinks instead of expands.<\/p>\n

Despite the solid headline result, the underlying details of the GDP report were \u201cmixed,\u201d Nathan Janzen, assistant chief economist at Royal Bank of Canada said in a statement, adding that sectors exposed to tariffs and the trade war showed \u201cfurther signs of stabilization.\u201d<\/p>\n

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Canada\u2019s economy took a hit from U.S. President Donald Trump\u2019s tariff policies<\/a> earlier this year, especially in the manufacturing sector, <\/a>which led to a lot of the GDP declines in the second quarter.<\/p>\n

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But the economy bounced back, as Statistics Canada says exports edged up as imports fell sharply, strengthening the national trade balance in the third quarter.<\/p>\n

The agency also says government capital investments, particularly on new weapon systems, pushed growth higher last quarter but slowing household spending<\/a> and construction activity offset some of the gains.<\/p>\n

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\u201cCanada\u2019s headline growth only looks good on paper \u2014 external conditions will continue to put pressure on the economy,\u201d said Andrew DiCapua, principal economist at the Canadian Chamber of Commerce in a statement.<\/p>\n

\u201cWe\u2019ll need strong domestic demand to carry more of the load \u2014 it simply wasn\u2019t there in third quarter GDP. Households and businesses are still holding back, and the economy hasn\u2019t found the momentum it needs to shift into a higher gear.\u201d<\/p>\n

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In October, the Bank of Canada delivered its latest interest rate cut<\/a> to help boost the economy, which Governor Tiff Macklem said had been \u201cweakened\u201d by tariffs and the trade war. It was also the third cut to borrowing rates so far in 2025.<\/p>\n

This latest GDP report was higher than the 0.5 per cent growth the central bank had predicted. Macklem said even with some modest growth, the economy is performing below its potential, and added it\u2019s \u201cnot going to feel very good\u201d over the next few months.<\/p>\n

Thirty-five per cent of business and financial leaders surveyed in September said they expect the Canadian economy to fall into a recession within the next six months, according to the Bank of Canada\u2019s Market Participants Survey<\/a> for the third quarter.<\/p>\n

\u2013\u00a0With files from the Canadian Press<\/p>\n

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\n\t\t&copy 2025 Global News, a division of Corus Entertainment Inc.\t<\/p>\n","protected":false},"excerpt":{"rendered":"The Canadian economy managed to avoid a recession in the third quarter, according to the latest report from…\n","protected":false},"author":2,"featured_media":312902,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,86829,46,64269],"class_list":["post-312901","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-canadian-economy","tag-economy","tag-gross-domestic-product"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/312901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=312901"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/312901\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/312902"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=312901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=312901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=312901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}