In 2025, real gross domestic product (GDP) grew in all but one of Canada’s provinces and territories. GDP growth was strongest in Newfoundland and Labrador (+3.5%), one of only two provinces—along with British Columbia (+2.0%)—that outpaced its growth rate from the previous year. The Northwest Territories was the only jurisdiction where GDP declined, marking two consecutive years of negative growth, said Statistics Canada in a recent report.
Growth in services-producing industries in 2025 was positive but lower than in 2024 for all jurisdictions. Goods-producing industries varied across Canada, declining in four jurisdictions, it said.
Growth in real gross domestic product by industry, Canada, provinces and territories, 2025
“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,” said the federal agency.
“For the second consecutive year, the Prairie provinces, which account for just under one-fifth (19%) of the population, contributed to approximately one-third (+0.54 percentage points) of national GDP growth, thanks in part to goods-producing industries. Alberta (+0.42 percentage points) contributed almost as much to Canada’s economic growth as Ontario.
“British Columbia (+0.28 percentage points), the Atlantic provinces (+0.13 percentage points) and Quebec (+0.12 percentage points), along with Yukon and Nunavut (+0.001 percentage points together) also contributed to national economic growth.
“Conversely, the Northwest Territories was the only jurisdiction with a drag (-0.003 percentage points) on national economic growth.”
The report said growth in the value-added of services-producing industries slowed in every jurisdiction in 2025, with growth in seven jurisdictions slowing for the second consecutive year. The public sector (consisting of educational services, health care and social assistance, and public administration) was a significant contributor to nationwide growth. However, growth in 2025 slowed relative to 2024 in most jurisdictions. The health care and social assistance sector continued to expand nationwide for the second consecutive year, albeit at a slower pace compared with 2024 for all but three jurisdictions, said Statistics Canada.
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, 2025 and 2026.
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