Canada's Economy Grew 2.6 In Fourth Quarter

Although Canada s economy surprised everyone by growing 2.6 per cent in the fourth quarter, President Donald Trumps promise to apply devastating import taxes next week casts a pall of worry over the nation.

The gains above the 1 growth recorded in the third quarter of 2024, according to Statistics Canada, and were driven by increases in household consumption, business investment, and exports.

Following a hike in borrowing costs to control inflation, Canada was the first G7 economy to start lowering interest rates last year.

As it responded to lower interest rates, Canadas economy showed some evident sparks of life in the final quarter of 2024, CIBC economics wrote in a commentary on the most recent GDP figures.

But that flame could still be extinguished in 2025 if the country faces a tariff wall, CIBC stated.