October 31, 2025
RED FM News Desk
Statistics Canada reports that real GDP fell by 0.3% in August, with contraction seen across both the goods and services sides of the economy.
The agency stated that the decline in August largely nullified the 0.3% growth in real GDP recorded in July, which was revised slightly upwards from earlier estimates.
Air travel activity was hindered in August due to a work stoppage by Air Canada flight attendants. However, the month also saw declines in the manufacturing, wholesale trade, and mining, quarrying, and oil and gas extraction sub-sectors.
Retail trade was the main source of growth, helping to offset the overall decline.
According to StatCan’s preliminary estimates, September is projected to show 0.1% growth, with early indicators pointing to a rebound in the tariff-sensitive manufacturing sector. These preliminary forecasts suggest that the annualized real GDP growth for the third quarter of the year will be 0.4%, representing a modest rebound from the economic contraction experienced in the second quarter.
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