Canada GDP contracts 0.6% in Q4 vs. 0% expected

Canada's GDP contracted in Q4 after expanding in Q3.
USD/CAD remains within a tight daily trading channel below 1.3700.

Eren Sengezer FXStreet

Canada's real Gross Domestic Product (GDP) contracted at an annualized rate of 0.6% in the fourth quarter, Statistics Canada reported on Friday. This print followed the 2.4% growth recorded in the previous quarter and came in below the market expectation of 0%.

On a quarterly basis, GDP contracted by 0.2% after the third quarter's 0.6% expansion.

"Real GDP increased 1.7% in 2025, the slowest pace of annual growth since the decline in 2020. Lower exports, particularly to the United States, were the main contributor to the slower rise in GDP in 2025," the press release read.

Market reaction

USD/CAD largely ignored these figures and was last seen trading unchanged on the day at 1.3680.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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