OTTAWA, Feb. 27 (Xinhua) -- Canada's real GDP growth slowed to 1.7 percent in 2025, marking the slowest annual growth rate since 2020, Statistics Canada said Friday.
A decrease in exports, particularly to the United States, was the primary driver behind the cooling economy, said the national statistical agency.
According to the agency, total exports fell 1.7 percent in 2025, largely due to a sharp drop in shipments to the United States during the second quarter despite the increases in the latter half of the year.
It said that 2025 saw the first annual contraction in non-farm inventories since the COVID-19 pandemic in 2020. In contrast, farm inventories rose for the first time in three years, bolstered by strong crop production.
Household final consumption expenditure grew by 2.3 percent, remaining consistent with the growth rates of the previous two years.
Total capital investment increased by 1.4 percent in 2025, significantly driven by government spending, with a 45.9 percent surge in investment in weapons systems.
The agency said that both services-producing and goods-producing industries saw growth in 2025, with 16 out of 20 industrial sectors expanding. The finance and insurance sector, along with oil and gas extraction, was the largest contributor to growth.
The manufacturing sector was the biggest laggard for the year, hampered by the negative impact of U.S. tariffs on Canadian products, said Statistics Canada.
