Overview

• Canada’s GDP fell by 0.2% in February, marking the first monthly contraction since November 2024, according to Statistics Canada.
• The mining, quarrying, and oil and gas sector led the decline with a 2.5% drop, while construction saw its first contraction in four months, down 0.5%.
• Services-producing industries, including real estate and leasing, contracted by 0.1%, but manufacturing and finance sectors grew by 0.6% and 0.7%, respectively.
• Adverse winter weather and U.S. tariff uncertainties contributed to the downturn, with analysts previously expecting flat GDP growth for February.
• Statistics Canada projects a 0.1% GDP increase in March and a 1.5% annualized growth rate for the first quarter of 2025.