Canada Economy on Track to Bounce Back in Third Quarter (3)

Sept. 26, 2025, 3:45 PM UTC

The Canadian economy appears set to avoid recession this year with a third-quarter rebound.

Industry-based gross domestic product expanded 0.2% in July, beating the median economist estimate in a Bloomberg survey, and Statistics Canada’s advance data suggested output was unchanged in August. These were the first months since April that the economy didn’t see monthly contractions.

Assuming there’s zero growth in September, the Canadian economy would grow at an annualized pace of 0.7% in the third quarter, a strong pickup from a second-quarter contraction.

Economists in a Bloomberg survey expect the economy to grow at a slightly weaker pace ...

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