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Canada's economic growth in 2025: what the annual figures show

Canada's economy grew 1.74% in 2025, down from 2.05% in 2024 and well below the rebound years of 2021 and 2022.

Published 2 min read

  • 20182.74%
  • 20191.91%
  • 2020-5.04%
  • 20215.95%
  • 20224.7%
  • 20231.95%
  • 20242.05%
  • 20251.74%
Canada · GDP growth · World Bank

Canada GDP growth →

The economy kept growing in 2025, but more slowly

For households, the main point is simple. Canada's economy grew in 2025, but at a slower pace than the year before. GDP growth, measured as an annual percentage, was 1.74% in 2025. In 2024 it was 2.05%.

Sources for this paragraph (2)

Growth was still positive. The economy did not shrink in 2025. It expanded by less than it did in 2024.

Sources for this paragraph (2)

What the official figures show, year by year

The measure here is annual GDP growth in percent, comparing each calendar year with the one before. In 2018 growth was 2.74%. In 2019 it eased to 1.91%.

Sources for this paragraph (2)

In 2020 the economy contracted, with growth of -5.04%. It then bounced back, growing 5.95% in 2021 and 4.7% in 2022.

Sources for this paragraph (3)

Growth was 1.95% in 2023. It edged up to 2.05% in 2024, then fell to 1.74% in 2025.

Sources for this paragraph (3)

How 2025 compares with earlier years

The 2025 rate of 1.74% is the lowest positive annual figure in this series from 2018 to 2025. It sits below the 1.91% of 2019 and the 1.95% of 2023.

Sources for this paragraph (3)

The large swings of 2020, 2021 and 2022 reflect a sharp contraction followed by a rebound. Since 2023, annual growth has stayed in a narrower range, between 1.74% and 2.05%.

Sources for this paragraph (6)

What it means for people living in Canada

Annual GDP growth describes the whole economy, not any one household. A slower year of growth does not tell you how your own income or job changed.

Sources for this paragraph (1)

Monthly figures give a more recent picture of daily costs. Consumer prices rose 3.09% over the 12 months to September 2026. Food prices rose 2.18% over the same 12 months. These are separate measures, so one should not be read as a share of the other.

Sources for this paragraph (2)

For people facing a mortgage renewal, the Bank of Canada's policy rate was 2.25% at the end of September 2026. On housing, shelter prices in the consumer price index rose 1.75% over 12 months, while the new housing price index was -2.04% over 12 months. These two indexes track different things and are not directly comparable.

Sources for this paragraph (3)

On jobs, the seasonally adjusted unemployment rate was 6.5% in September 2026. Average weekly earnings were up 3.68% over the 12 months to August 2026. That earnings figure covers a different month from the price figures above, so the two are not set side by side here.

Sources for this paragraph (2)

Canada's population grew 0.94% in 2025, the same year the economy grew 1.74%. The facts here do not include growth per person, so this analysis does not estimate it.

Sources for this paragraph (2)

What the data does not tell us

The latest annual GDP figure is for 2025. There is no full-year figure for 2026 in this data.

Sources for this paragraph (1)

The facts do not explain why growth slowed in 2025. They also do not show which regions or industries grew faster or slower.

Sources for this paragraph (2)

There is also an annual unemployment figure of 6.91% for 2025, an ILO modelled estimate. It is calculated differently from the monthly seasonally adjusted rate of 6.5%, so the gap between them should not be read as a change in joblessness.

Sources for this paragraph (2)

Longer-term population figures, such as the 20.26% share of people aged 65 and above in 2025 and a fertility rate of 1.25 births per woman in 2024, describe the population's makeup. The data does not show how they relate to growth in any single year.

Sources for this paragraph (2)
  • C21 Canada · Share of population aged 65+ · 20.26% · 2025 · World Bank
  • C20 Canada · Fertility rate · 1.25 · 2024 · World Bank

Scenarios to watch

  • Scenario, not a forecast The full-year figure for 2026, once published, will show whether annual growth ends up above, below or close to the 1.74% recorded for 2025.
  • Scenario, not a forecast Monthly releases on prices, earnings and unemployment will continue to show how conditions for households are moving between annual GDP figures.

What to check next

  • The first annual GDP growth figure for 2026, compared with 1.74% in 2025
  • The next monthly consumer price inflation reading after September 2026
  • The Bank of Canada's policy rate at upcoming month-ends
  • The seasonally adjusted unemployment rate for the months after September 2026
  • Average weekly earnings figures for the months after August 2026

Verified data used in this report

IndicatorValuePeriodSourcesAccessed
F1Canada · GDP growth2.74%2018World Bank
F2Canada · GDP growth1.91%2019World Bank
F3Canada · GDP growth-5.04%2020World Bank
F4Canada · GDP growth5.95%2021World Bank
F5Canada · GDP growth4.7%2022World Bank
F6Canada · GDP growth1.95%2023World Bank
F7Canada · GDP growth2.05%2024World Bank
F8Canada · GDP growth1.74%2025World Bank
C11Canada · Consumer price inflation3.09%2026-09Statistics Canada
C12Canada · Food price inflation2.18%2026-09Statistics Canada
C13Canada · New home prices-2.04%2026-09Statistics Canada
C14Canada · Central bank policy rate2.25%2026-09Bank of Canada
C15Canada · Housing cost inflation1.75%2026-09Statistics Canada
C16Canada · Unemployment rate6.5%2026-09Statistics Canada
C17Canada · Wage growth3.68%2026-08Statistics Canada
C19Canada · Unemployment rate6.91%2025World Bank
C20Canada · Fertility rate1.252024World Bank
C21Canada · Share of population aged 65+20.26%2025World Bank
C22Canada · Population growth0.94%2025World Bank

Sources

  • Source: World Bank, World Development Indicators (CC BY 4.0) — license
  • Source: Statistics Canada. Reproduced and distributed on an "as is" basis with the permission of Statistics Canada — license
  • Source: Bank of Canada — license

How this report was checked

  • Data: the newest reference period cited is 2026-09.
  • Figures were collected from the source on
  • Written by an AI model (claude-opus-5-5) using only the official figures listed in this report.
  • Automatic checks passed: every number matches a cited figure, every paragraph names its evidence, and there is no investment advice or copied source text.
  • A separate quality-check model found no unsupported or speculative sentences.
  • No person reviewed this report before publication. Automatic checks confirm the numbers, not every interpretation.
Update history
  • 2026-10-30 16:01 UTC — created
  • 2026-10-30 16:01 UTC — approved+published

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