Economics expert available to discuss Canada’s latest GDP figures

Hamilton, ON, Nov. 28, 2025– Statistics Canada has released September GDP data, completing the picture for the third quarter – and the news is better than many feared.

After shrinking in the spring and stumbling through July and August, the economy grew in September, giving the country a small but important boost and provided just enough momentum to keep Canada out of a technical recession.

“This GDP report shows how fragile Canada’s recovery remains. While September growth helped us avoid a technical recession, weak business investment and soft consumer spending signal ongoing challenges,” explains Colin Mang, assistant professor of economics.

“The next few months will be critical to see if interest rate cuts and job gains can sustain momentum.”

Colin can be reached at colinmang@mcmaster.ca

What’s behind the numbers?

• Canadians buying local: Months of “Buy Canadian” campaigns seem to have worked. Imports dropped by 2.2 per cent, the biggest decline since 2022, as families shifted toward Canadian-made products

• Spending slowdown: Household spending fell for the first time since 2021, thanks to higher unemployment and trade uncertainty over the summer

• Signs of recovery: Two Bank of Canada interest rate cuts and a stronger job market this fall should help turn things around heading into the holiday season

• Business caution: Investment in machinery and equipment fell for the second straight quarter – the lowest since early 2021. Manufacturers want to wait to see what happens with Canada-U.S. trade relations

• What kept us afloat: Government spending, more homebuilding and a better trade balance helped offset weak consumer spending and business investment. Overall, GDP grew 0.645 per cent in Q3 (2.6 per cent annualized).