The Headlines – Growth rebound: Canada posts 2.6% Q3 GDP surge; stronger trade and govt spending drive recovery

Canada’s economy rebounded with a stronger-than-expected 2.6% year-on-year growth in Q3 2025, driven by an improved trade balance and increased government spending. This recovery, exceeding analyst forecasts, was bolstered by declining imports and a surge in federal outlays, particularly on military hardware, as Prime Minister Mark Carney prioritizes defense upgrades.

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