Statistics Canada reported on Wednesday that the country's real gross domestic product (GDP) rose by 0.2% in February, marking a modest increase in economic activity. The data, released from Ottawa, indicates a continued but slow recovery as various sectors showed mixed performance.
Economic Highlights
The February uptick follows a similar trend from previous months, with gains in services-producing industries offsetting declines in goods-producing sectors. According to the agency, the increase was driven by growth in retail trade, finance and insurance, and public administration.
Services Sector Leads Growth
Services-producing industries expanded by 0.3% in February, with retail trade rising 1.2%—the largest gain since July 2025. Finance and insurance also contributed, growing 0.5% amid increased activity in financial markets. Public administration edged up 0.4% due to higher government spending.
However, the goods-producing sector contracted by 0.1%, as declines in manufacturing and construction outweighed gains in mining and oil and gas extraction. Manufacturing fell 0.4%, while construction dropped 0.3%, partly due to severe winter weather in some regions.
Regional Variations
Provincial data showed mixed results, with Alberta and British Columbia posting gains due to robust energy and real estate activity, while Ontario and Quebec saw slower growth. The agency noted that the national average was supported by strong exports and consumer spending.
Economists had anticipated a 0.2% rise, aligning with the actual figure. The Bank of Canada may consider this data when setting interest rates, as inflation remains a concern. The GDP report reinforces expectations of a gradual economic expansion in the first quarter of 2026.
