29.08.202512:30:00UTC+00Canada's Economic Downturn Slows: GDP Shows Signs of Recovery in Q2

Ottawa, August 29, 2025 – Canada's economic contraction appears to be slowing, according to the latest figures from the second quarter of 2025. Data released today reveals that the country's GDP annualized rate reached -1.6%, a slight improvement over the -2.0% seen in the first quarter of 2025.

This reduction in the rate of decline signals a modest easing of the economic struggles Canada has faced this year. The first quarter's annualized rate depicted a stark downturn from the prior quarter, reflecting broader economic challenges. However, the subsequent improvement to -1.6% in the second quarter suggests that the nation's economy might be on a path to stabilization.

Economists point to various factors, including potential policy adjustments and global economic influences, that may be contributing to this tentative economic rebound. As the country advances into the latter half of the year, all eyes will be on forthcoming data and indicators to confirm if this pattern suggests a sustainable recovery trajectory.