Canada’s economy grew 1.9% in 2025 as provinces diverged, Statistics Canada says

Statistics Canada’s annual provincial and territorial economic accounts show Canada’s economy grew 1.9% in 2025, a slower pace than the revised 2.0% increase recorded in 2024.

The national deceleration came with a sharply uneven regional picture. Newfoundland and Labrador and Alberta were among the stronger performers, while the Northwest Territories contracted, underscoring how differently provinces and territories experienced the year.

There are two separate official GDP measures in play. The 1.9% figure is Canada’s national gross domestic product measured through income and expenditure accounts. A different Statistics Canada series, GDP by industry, showed national real GDP rose 1.6% in 2025. Both measures are official, but they are compiled differently and can produce different annual growth rates.

That distinction matters when looking across provinces. In the GDP-by-industry data, Newfoundland and Labrador posted 3.5% growth in 2025, one of the fastest rates in the country, while Alberta grew 2.7%. British Columbia rose 2.0%, Ontario increased 1.3% and Quebec grew 0.6%. At the other end, the Northwest Territories shrank 2.0%, while Nunavut edged up 0.1%.

Ontario, Alberta and British Columbia contributed the most to national growth in the provincial GDP-by-industry series. Ontario’s role was especially notable. Statistics Canada said, “Canada’s real GDP by industry increased by 1.6% in 2025, with Ontario (+0.49 percentage points) contributing to the national economic growth mainly as a result of the services-producing industries.”

The sector mix also helped explain the regional split. Services remained a key driver in several provinces, while oil and gas extraction and mining helped lift growth in Newfoundland and Labrador and Alberta. Manufacturing, by contrast, was a drag in many jurisdictions.

The provincial results show resource-heavy economies generally outpacing central Canada. Newfoundland and Labrador’s 3.5% gain was far stronger than the 0.6% increase in Quebec and the 1.3% rise in Ontario, even though Ontario remained one of the biggest contributors to total national growth because of the size of its economy.

Statistics Canada released the 2025 provincial and territorial economic accounts on Thursday. The figures add provincial detail to a year in which the national economy continued to grow, but more slowly than in 2024.

Readers should be cautious about comparing the series too directly. Statistics Canada has said Canada totals in the provincial and territorial economic accounts do not always fully match the national GDP-by-income-and-expenditure accounts at every point in the revision cycle. Annual revisions are used to bring the series back into line.

The agency also noted earlier this year that its national accounts figures for 2025 were revised. In its May 29 release on GDP, income and expenditure, Statistics Canada said, “This release of gross domestic product, income and expenditure for the first quarter of 2026 includes revised estimates for the first quarter of 2025 to the fourth quarter of 2025.”