The Economics and Statistics Division maintains archives of previous publications for accountability purposes, but makes no updates to keep these documents current with the latest data revisions from Statistics Canada. As a result, information in older documents may not be accurate. Please exercise caution when referring to older documents. For the latest information and historical data, please contact the individual listed to the right.
<--- Return to Archive
For additional information relating to this article, please contact:
August 29, 2025CANADIAN ECONOMIC ACCOUNTS Q2 2025 
Canada’s Real Gross Domestic Product (GDP) contracted at a seasonally adjusted annualized rate of 1.6% (all figures seasonally adjusted at annual rates) in the second quarter of 2025, following a 2.0% gain in Q1 2025.
The contraction was primarily driven by falling exports, as well as declining non-residential investment. These were partially offset by increases in household consumption, government consumption and investment, residential investment, rising inventory investment, and falling imports, which are subtracted from GDP.
Household consumption growth increased at a seasonally adjusted annualized rate of 4.5% in Q2 2025. The increase was led by higher spending on new trucks/vans/SUVs and insurance/financial services. Government consumption expenditures increased by 5.1%.
Residential investment increased by 6.3% in Q2 2025, driven by an increase in new construction and ownership transfer costs.
Non-residential investment fell by 10.1% in Q2 on lower investment in machinery and equipment, while government investment was up 8.8% in Q2 2025.
Exports contracted in Q2 with a 26.8% decrease, following a Q1 increase of 5.8%. Export declines were largest in passenger vehicles, industrial machinery/equipment/parts, and travel services . Imports fell by 5.1%, and was similarly driven by declines in imports of passenger vehicles and travel services.
Investment in inventories was $26.9 billion in Q2 2025, a return to recent levels following a contraction in Q4 2025 and lower investment in Q1 2025.
Nominal GDP contracted at a seasonally adjusted annualized rate of 1.6% in Q2 2025, slowing from the 5.0% pace set in Q1 2025.
The overall GDP deflator (reflects overall price of domestically produced goods and services) was unchanged from the previous quarter.
Employee compensation (measured in current prices, not real volumes) was up by a seasonally adjusted annualized rate of 0.7% in Q2, the slowest rate since Q2 2016 outside the pandemic-induced decline in 2020. Growth was led by higher wages in construction, federal government administration, and mining/oil/gas extraction.
Including mixed income from unincorporated businesses, property income (such as interest and dividends from financial assets), current transfers (such as CPP and EI) with employee compensation, Canada's overall household income fell at a seasonally adjusted annualized rate of 0.1% in Q2 2025.
The household savings rate fell to 5.0% of disposable income in Q2 as disposable income growth fell short of the increases in consumption.
Net operating surplus for corporations fell at a 13.1% seasonally adjusted annualized rate, as declines in oil and gas prices and outputs weighed on non-financial corporation earnings. Net mixed income of unincorporated businesses was up 3.5% in Q2.
Source: Statistics Canada. Table 36-10-0103-01 Gross domestic product, income-based, quarterly (x 1,000,000), Table 36-10-0104-01 Gross domestic product, expenditure-based, Canada, quarterly (x 1,000,000), Table 36-10-0112-01 Current and capital accounts - Households, Canada, quarterly; Table: 36-10-0106-01 Gross domestic product price indexes, quarterly
<--- Return to Archive
