A preliminary estimate shows that Canada’s economy grew an annualized 0.3% in this year’s third quarter as U.S. tariffs and soaring energy costs weigh on the country.
Statistics Canada said an advance estimate found that real gross domestic product (GDP) in Canada expanded by 0.3% in the third quarter. That estimate will be revised in Novemmber.
The preliminary Q3 estimate is based on no economic growth in August of this year and a decline of 0.1% in September, according to the Ottawa-based statistics agency.
Canada’s economy recorded no growth in August after also stalling in July. Of the 20 industrial sectors tracked by Statistics Canada, only nine expanded during August.
Retail sales in Canada rose 1.2% in August, led by a rebound in motor vehicle sales, which increased 1.8% in the month.
Canada’s manufacturing sector rose 0.3% in August, up for the fifth time in seven months. The August gain was driven by 4.2% growth at petroleum refineries as crude oil prices remain high.
Exerting downward pressure on the economy was wholesale trade, which declined 1.4% in August on widespread contractions across most subsectors.
The mining and oil and gas extraction sector was essentially unchanged in August, said Statistics Canada.
The latest economic data is being released days after the Bank of Canada raised interest rates by 25-basis points to help lower inflation that is being pushed higher by energy prices.
It was the first rate hike from Canada’s central bank since 2023.
