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Canada's economy shrinks, dragging 2025 growth to slowest pace since height of pandemic - FINANCIAL POST

FEBRUARY 27, 2026

Canada’s economy lost momentum at the end of last year as real gross domestic product (GDP) declined 0.2 per cent in the fourth quarter, Statistics Canada said Friday, and annual growth dropped to its slowest pace since 2020.

GDP expanded by just 1.7 per cent in 2025, the agency said, a result of lower exports, particularly to the United States.

The fourth quarter decline was attributed to withdrawals from business inventories.

GDP rose 0.2 per cent in December, slightly higher than the agency’s advance estimate of 0.1 per cent. The gain was driven by increases in both services-producing and goods-producing industries.

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