Canada’s economy managed slight growth after it shrunk in the last quarter of 2025, with February seeing a 0.2 per cent increase in GDP and a modest increase of 0.1 per cent in January, Statistics Canada said.
Based on current estimates, Statistics Canada is projecting that Canada’s annualized GDP growth for the first quarter of 2026 will be 1.7 per cent.
The Bank of Canada projects the economy will expand 1.2 per cent in 2026, 1.6 per cent in 2027, and 1.7 per cent in 2028, “as growth in exports and business investment gradually resumes.”
The official final estimate for quarterly GDP growth will be released next month.
Canada’s tariff-hit manufacturing sector led the growth in February, rising by 1.8 per cent. This was the largest growth for the sector since January 2023 and was driven by a 3.6 per cent increase in durable-goods manufacturing.
Within that sector, machine manufacturing came in strong with an increase of 8.7 per cent. The manufacturing of transportation equipment, which fell by seven per cent last month, nearly recovered with a 5.5 per cent increase.
Canada’s auto sector, which has been in the crosshairs of U.S. President Donald Trump’s tariffs, saw motor vehicle manufacturing rise by 20.4 per cent, while auto parts manufacturing rose by 4.2 per cent.
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Auto assembly plants in Ontario – the heart of Canada’s car manufacturing industry – ramped up production in February, Statistics Canada said.
The Canadian economy “continues to hang in there,” said BMO economist Benjamin Reitzes, but added that the fog of uncertainty has not yet lifted.
“We now have the added shock of higher energy prices to deal with,” Reitzes said.
The transportation and warehousing sector rose 1.2 per cent in February, with truck transportation recording its largest growth since March 2021, data showed.
Primary metal manufacturing, another sector hit by Trump’s tariffs, rose by 5.2 per cent.
Mining, quarrying, and oil and gas extraction grew 0.4 per cent in February, the agency added, while the finance and insurance sector grew by 0.2 per cent.
Canada’s public sector, however, saw a 0.3 per cent decline in February with public administration recording a 0.5 per cent decline.
Education services shrunk by 0.5 per cent, down for the first time in four months.
Canada’s arts, entertainment and recreation sector contracted 2.5 per cent in February. This was the first decline in three months in the sector and the largest since January 2022, when the Omicron variant of COVID-19 forced shutdowns across the country.
Figures lie and liars (like Mark max carnage) lie.
Carbon tax has cost jobs not the misleading tariff liberal b.s. messaging.
Too many lieberal lovers on here.
Imma go back over to the National Post where I can feel better and whine and complain with other PP supporters
JV – If Carney is so popular why didn’t he call an election to win a majority government instead of buying it.
We won Carney bought his majority he didn’t win it.
Anyone else notice the increase in Liberal trolls recently.
I can’t wait to get back to the Ford Oakville assembly plant to start production on F-Series Super duty pickup trucks. There has been a gapping hole in exports since the Lincoln Nautilus (late 2023) and Ford Edge ended production in May 2024.
Thanks Prime Minister Carney, you are the leader we need.
PP would have already had a spay on tan and worse comb over than his idol Donny T., if he didn’t lose so spectacularly.
Worst beating in Canadian political history.
@JV – Carney’s approval numbers are as fake as the “New” liberal government. Just wait until the media stops playing defense for his decisions.
Keep drinking that Kool-Aid JV
JV is just a cheerleader.
Willow – Actually most Canadians support Carney. His approval rating is as high as it’s ever been. Stop lying
“Move along… nothing to see here.” Is the message. Don’t believe the actual facts and your lying eyes just believe what we tell you to believe. Again just more smoke and mirrors and deception from the Carney Liberals.
Funny they have been saying companies are closing and people are losing jobs for the last week. A company in Quebec has closed after being in business for 85 years over a hundred employees lost their jobs and Roger’s announced big reductions in their staffing levels. Food prices going up every month and let’s not forget how the gas prices are now higher than before Carney tax relief for 5 months. These articles are all smoke and mirrors and a juggling of numbers to make the economy look better than it is
Canadians know better.