Manufacturing and mining, quarrying, and oil and gas extraction all expanded.
The latest figures from Statistics Canada show Canada’s GDP grew 0.2% in February, led by goods-producing industries.
The manufacturing sector grew by 1.8%, the largest growth since January of 2023. Growth was strongest in machinery manufacturing (8.7%), transportation equipment manufacturing (5.5%, rebounding from a 7% decline in January), and motor vehicle and parts manufacturing (9.8%).
The wholesale trade sector grew 0.9% in February, while the transportation and warehousing sector rose 1.2%.
Mining, quarrying, and oil and gas extraction were up 0.4% in February, with oil and gas extraction up 0.4%, and mining and quarrying up 1.2%, led by 2.7% in metal ore mining and a 6.6% increase in copper, nickel, lend, and zinc ore mining.
Private sector growth
In a positive sign, Canada’s growth came from the private sector. The public sector contracted 0.3% in February, with public administration down 0.5%, and education services down 0.5%. Given that much of Canada’s growth has been dependent on government spending, which is inherently less efficient than private sector expansion, this is a trend worth watching. Canada must generate private sector growth to achieve true productivity growth and avoid reliance on deficit spending.
Overall, the latest GDP report is a positive one. The private sector is growing and the overall economy is expanding despite a stagnant or declining population and despite ongoing trade disruptions caused by the anti-trade attitude of the Trump Administration.
Spencer Fernando
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