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Canada's GDP Grows 0.1% Amid Inflation Concerns

4/1/2026

25 2 Full Breakdown

Summary

Story summary

Canada's real GDP rose 0.1% in January 2026, following a 0.2% gain in December.
Goods-producing industries increased 0.2%, led by mining and oil extraction.
Manufacturing contracted 1.4%, due to declines in the automotive sector.
Analysts expect GDP to grow 0.2% in February.
Inflation and consumer spending remain concerns due to rising oil prices tied to the Iran conflict.

History

Historical Context

Canada officially entered a recession in late 2008, following a 2.9% GDP contraction during the global financial crisis. The Bank of Canada responded by lowering interest rates to 0.25%, aiming to stimulate growth. As of 2023, a modest GDP increase of 0.1% reflects ongoing challenges, particularly in manufacturing, which has been impacted by declines in the automotive sector.

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Story summary

Canada's real GDP rose 0.1% in January 2026, following a 0.2% gain in December.
Goods-producing industries increased 0.2%, led by mining and oil extraction.
Manufacturing contracted 1.4%, due to declines in the automotive sector.
Analysts expect GDP to grow 0.2% in February.
Inflation and consumer spending remain concerns due to rising oil prices tied to the Iran conflict.

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