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Canada's Economy Shrinks 0.3%, Weak Outlook Ahead

12/23/2025

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Summary

Story summary

Canada’s economy contracted 0.3% in October, the largest decline in nearly three years, with economists warning of weak momentum into the fourth quarter and a 0.2% projected shrinkage.
Estimates indicate a 0.1% growth in November.
The manufacturing sector fell 1.5% due to a significant drop in machinery output and U.S. tariffs on lumber.
Labor disruptions from strikes impacted activity.
Bank of Canada kept its policy rate at 2.25%, citing resilience amid uncertainty.

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Story summary

Canada’s economy contracted 0.3% in October, the largest decline in nearly three years, with economists warning of weak momentum into the fourth quarter and a 0.2% projected shrinkage.
Estimates indicate a 0.1% growth in November.
The manufacturing sector fell 1.5% due to a significant drop in machinery output and U.S. tariffs on lumber.
Labor disruptions from strikes impacted activity.
Bank of Canada kept its policy rate at 2.25%, citing resilience amid uncertainty.