Real gross domestic product (GDP) increased 0.6% in the third quarter of 2025, after falling 0.5% in the second quarter. The rise in the third quarter was driven by a strengthening trade balance, as imports dropped and exports edged up. Increased capital investment was driven by government capital spending, as business investment was flat. Overall growth was dampened by declines in household and government final consumption expenditures as well as a slower accumulation of business inventory, according to a report released by Statistics Canada on Friday.
On a per capita basis, GDP increased 0.5% in the third quarter, after falling 0.5% the previous quarter, said the federal agency.
Real gross domestic product and final domestic demand
“Imports of goods and services fell 2.2% in the third quarter, the largest drop since the fourth quarter of 2022. After recording a significant increase in the second quarter of 2025, imports of unwrought gold, silver and platinum group metals fell in the third quarter. Imports of industrial machinery, equipment and parts also declined in the third quarter, partially the result of a stronger second quarter caused by the import of a large oil and gas platform module,” said Statistics Canada.
“Exports of goods and services edged up 0.2% in the third quarter, a slight increase from the significant drop in the second quarter (-7.0%). The increase in the third quarter was led by higher exports of crude oil and crude bitumen (+6.7%), followed by commercial services (+1.7%). Decreased exports of unwrought gold, silver and platinum group metals tempered the overall increase in the third quarter.”
Compensation of employees rose 1.1% in the third quarter, following a 0.3% increase in the second quarter. Wages were up in all industries in the third quarter, except for federal government public administration excluding military (-4.2%), noted Statistics Canada.
“The major contributors to wage growth in the third quarter were professional and personal services (+1.1%), finance, real estate and company management (+1.7%) and health care and social assistance (+1.2%),” it said.
“Compensation of employees increased in all provinces and territories in the third quarter. The highest growth was in New Brunswick (+1.7%) and the lowest increase was in British Columbia (+0.2%).”
Compensation of employees, quarter-to-quarter % change, seasonally adjusted data
Statistics Canada said the household saving rate (4.7%) ticked up in the third quarter, as disposable income (+0.8%) slightly outpaced nominal household spending (+0.7%). The household saving rate is aggregated across all income brackets; in general, saving rates are greater in higher income brackets.
“Disposable income gains in the third quarter were mainly due to increases in wages and salaries, followed by higher self-employment income (termed net mixed income) and investment income (termed property income received). Investment income rose 1.1% in the third quarter, the same pace as in the second quarter, driven by higher domestic dividend income,” it said.
“Corporate income (termed gross operating surplus) increased by 2.5% in the third quarter, as increased production of energy products brought in more income from non-financial corporations. The increase was further bolstered by higher mining sector income, driven by rising prices.
“Income of the manufacturing sector was broadly positive in the third quarter, led by increased sales of refined energy products, while the publishing, broadcasting and telecommunications sector benefitted from successful summer events. Financial corporations’ income was up in the third quarter, mainly due to higher surpluses among chartered banks. Financial corporations’ income thus established a three-quarter upward trend and contributed to the overall rise in corporate income.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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