Canada's Q1 GDP flat, annualized rate dips 0.1 pct


By Lin Wei

OTTAWA, May 29 (Xinhua) -- Canada's real gross domestic product (GDP) was unchanged in the first quarter of 2026, following a 0.2-percent contraction in the fourth quarter of 2025, Statistics Canada said Friday.

According to the national statistical agency, higher imports of goods, particularly gold, were offset by accumulations of business inventories. Meanwhile, decreased business and government capital investment was counterbalanced by higher household spending, as final domestic demand edged 0.1 percent lower.

On an annualized basis, Canada's GDP edged down 0.1 percent in the first quarter, falling well below early estimates from a month ago that pointed to growth of nearly 2 percent. This marks the second consecutive quarterly decline on an annualized rate, following a 1-percent drop in the final quarter of 2025.

However, on a per capita basis, real GDP increased 0.2 percent in the first quarter of 2026, driven by a population decline for a second consecutive quarter while GDP remained unchanged, said Statistics Canada.

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