Canada’s economy bounced back in the third quarter of 2025, posting 2.6% growth year-on-year after contracting in the second quarter, helped in part by stronger trade numbers, official figures showed today.<\/p>\n
US President Donald Trump’s trade war has dampened Canadian growth and clouded the country’s trade outlook.<\/p>\n
The Canadian economy contracted by 1.8% in the second quarter of this year, and analysts broadly expected a modest 0.5% growth figure for the third quarter.<\/p>\n
The 2.6% growth figure reported by Statistics Canada today “was well above the consensus forecast,” CIBC economist Katherine Judge said in a note.<\/p>\n
Statistics Canada said an improved trade balance and government spending were the main factors.<\/p>\n
“Imports dropped and exports edged up. Increased capital investment was driven by government capital spending, as business investment was flat,” the agency said.<\/p>\n
The drop in imports was the largest since 2022, Statistics Canada said.<\/p>\n
On government spending, the data highlighted an 82% increase on weapons systems.<\/p>\n
Since taking office in March, Prime Minister Mark Carney has made upgrading Canada’s ageing military hardware a central policy.<\/p>\n
He says huge investments are needed for Canada to meet mandated NATO spending targets and to safeguard the country’s sovereignty in a time of rising threats, including from Russia in the Arctic.<\/p>\n","protected":false},"excerpt":{"rendered":"Canada’s economy bounced back in the third quarter of 2025, posting 2.6% growth year-on-year after contracting in the…\n","protected":false},"author":2,"featured_media":145150,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60],"class_list":["post-164568","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ie","tag-ireland"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/164568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=164568"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/164568\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/145150"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=164568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=164568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=164568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}