Canada’s economy was ‘surprisingly OK’ to start 2026: economists
Canada's economy showed a rebound in the first few months of 2026, with real gross domestic product edging up 0.1 per cent in January. The growth was driven by strength in goods-producing industries, and economists expect the Bank of Canada to maintain its current interest rate due to moderate growth and potential inflationary pressures.
Canada's economy rebounded in the first few months of 2026. Real gross domestic product edged up 0.1 per cent in January, driven by a 0.2 per cent expansion in goods-producing industries. Mining, quarrying, and oil and gas extraction grew 1.2 per cent, while manufacturing contracted 1.4 per cent. Services-producing industries remained unchanged. Economists expect moderate growth in the first quarter, which may influence the Bank of Canada's interest rate decision. The bank is currently taking a wait-and-see approach due to the impact of the Iran war on inflation and economic growth.
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