OTTAWA — Statistics Canada says the economy bounced back sharply in the third quarter with annualized growth of 2.6 per cent.
Real gross domestic product figures topped expectations from the Bank of Canada and other economists calling for growth of half a percentage point in the quarter.
The statistics agency says exports edged up as imports fell sharply, strengthening the national trade balance in the third quarter.
The agency says government capital investments, particularly on new weapon systems, also pushed growth higher last quarter but slowing household spending and construction activity offset some of the gains.
The third quarter real GDP results mark a rebound from a contraction of 1.8 per cent in the second quarter, when U.S. tariffs took full effect.
While Statistics Canada says real GDP for September topped its initial estimates with 0.2 per cent growth, the early reading for October suggests the Canadian economy started the fourth quarter with a contraction of 0.3 per cent.
This report by The Canadian Press was first published Nov. 28, 2025.
Craig Lord, The Canadian Press
