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Canadian Economy Set to Shrink Amidst Investment Decline

7/26/2025

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Summary

Story summary

The Canadian economy is forecasted to shrink by 0.8% in Q2 and Q3 of 2025, as per CFIB.
Private investment is anticipated to fall by 13.0% in Q2 and 6.9% in Q3, the largest drop since the pandemic.
Contributing factors include low business confidence, ongoing trade tensions, and a decline in manufacturing sectors.

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Story summary

The Canadian economy is forecasted to shrink by 0.8% in Q2 and Q3 of 2025, as per CFIB.
Private investment is anticipated to fall by 13.0% in Q2 and 6.9% in Q3, the largest drop since the pandemic.
Contributing factors include low business confidence, ongoing trade tensions, and a decline in manufacturing sectors.