The Canadian Press has published a report on February 28, 2025, detailing expectations for Canada's economic performance in the fourth quarter. Statistics Canada is set to release gross domestic product (GDP) figures that are expected to show a modest growth rate of 1.5 percent annualized. This projection aligns with the Royal Bank's expectations and forecasts by the Bank of Canada and economists polled by Reuters. The anticipated figures provide a snapshot of the Canadian economy before the significant policy shifts under US President Donald Trump's administration.
The preliminary estimates had initially called for a slightly higher growth rate of 1.8 percent annualized. However, the consensus among financial institutions and analysts settled on the more conservative figure. This anticipated growth marks an increase from the one percent annualized growth recorded in the third quarter. A busy December shopping season, spurred by the start of the Liberals' GST/HST holiday, is believed to have contributed positively to the economic momentum heading into 2025.
As Canada awaits the official release of GDP figures, these projections offer a glimpse into the economic landscape prior to potential disruptions from President Trump's tariff-setting agenda. The report highlights the cautious optimism surrounding Canada's economic stability amid evolving global trade dynamics.
The anticipated growth rate of 1.5 percent is modest but reflects a steady progression in the economy. Analysts closely monitor these figures as they provide context for future economic policies and decisions by financial authorities. The alignment between different forecasts underscores a shared confidence in the underlying strength of Canada's economy, despite external uncertainties.
