Canada GDP contracts 0.6% in Q4 vs. 0% expected

• Canada's GDP contracted in Q4 following Q3's expansion.
• USD/CAD remains within a tight daily trading channel below 1.3700.

Canada's real Gross Domestic Product (GDP) contracted at an annualized rate of 0.6% (QoQ) in the fourth quarter, Statistics Canada reported on Friday. This print followed the 2.4% growth recorded in the previous quarter and came in below the market expectation of 0%.

On a quarterly basis, GDP contracted by 0.2% after the third quarter's 0.6% expansion.

"Real GDP increased 1.7% in 2025, the slowest pace of annual growth since the decline in 2020. Lower exports, particularly to the United States, were the main contributor to the slower rise in GDP in 2025," the press release read.

Market reaction

USD/CAD largely ignored these figures and was last seen trading unchanged on the day at 1.3680.