Statistics Canada reports Canada’s economy grew 2.2% annualized in Q1 2025, exceeding analysts’ 1.4% prediction. The 0.5% quarterly rise reflects strong exports. U.S. importers, stockpiling goods before tariffs, fueled this growth.
Q4 2024 growth, revised to 2.1% annualized and 0.5% quarterly, shows slight improvement. Oil, gas, and mining sectors surged, driven by U.S. demand. However, household spending dropped to 0.3% from 1.2%, slowed by high interest rates.
U.S. firms accelerated imports before 25% tariffs on Canadian goods, effective March 2025. This temporary spike supported Canadian jobs and businesses. Yet, weak consumer spending and business investment signal ongoing domestic struggles.
Canada’s economy leans heavily on U.S. trade, with exports driving two-thirds of GDP. The 2.2% growth highlights trade vulnerability. Experts predict 1.0% growth for 2025, citing tariff risks.
This growth shapes business and policy decisions. It influences Bank of Canada’s interest rate plans, impacting loans and mortgages. U.S.-driven export surges reveal Canada’s trade dependence, urging diversified strategies.
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