Canada's GDP Rises 0.1% in January 2026

OTTAWA, Ontario — Canada's economy showed signs of modest recovery in early 2026, with real gross domestic product rising 0.1 percent in January following a contraction in the final quarter of the previous year, Statistics Canada reported on March 31.

The growth exceeded initial expectations of flat performance and was driven primarily by gains in goods-producing industries, which expanded 0.2 percent for the second consecutive month. Mining, quarrying, and oil and gas extraction led the increase with a 1.2 percent rise, supported by a 1.6 percent improvement in oil and gas extraction activities. Construction also contributed positively, marking its third straight month of expansion. However, these advances were partially offset by a 1.4 percent contraction in manufacturing, reflecting ongoing weaknesses in both durable and nondurable goods production. Services-producing industries remained essentially unchanged, as growth in retail trade and finance and insurance balanced declines in wholesale trade and transportation and warehousing. Overall, nine of the 20 major industrial sectors recorded increases in January.

A preliminary estimate indicated that GDP grew 0.2 percent in...