Provincial and territorial economic accounts, 2025

Released: 2026-11-05

Canada’s gross domestic product (GDP) rose 1.9% in 2025 after increasing 2.1% in 2024. The rise in 2025 was driven by increased household final consumption, followed by higher government final expenditure and capital investment. Lower exports of goods and withdrawals of business non-farm inventories tempered overall growth in 2025.

In 2025, GDP rose in all provinces as well as in Yukon and Nunavut, while the Northwest Territories (-1.7%) posted the lone decline. Among the provinces, Newfoundland and Labrador (+4.3%) recorded the fastest growth, while Quebec (+1.0%) recorded the slowest.

Household spending props up economic growth

Household spending rose 2.0% in 2025. This was the slowest rate of growth since the COVID-19 pandemic-induced decline in 2020. The increase in 2025 was led by higher spending on financial services, particularly investment fees, followed by rent (both paid and imputed). In contrast, there was less spending on education, as the number of international students in Canada declined, and on expenditures abroad, as travel by Canadians to the United States slowed.

In 2025, household spending increased at the fastest pace in Prince Edward Island (+3.5%) and Newfoundland and Labrador (+3.3%), while it fell in the Northwest Territories (-0.6%).

The deflator for household consumption expenditure eased again in 2025, increasing 2.5%, following a 2.6% rise in 2024 and a 3.7% rise in 2023.

Higher government spending leads overall capital investment in 2025

Capital spending rose 1.6% in 2025 following a 0.3% increase the previous year. Overall, capital investment was led by increased government spending on engineering structures and non-residential buildings, particularly in Prince Edward Island, Nova Scotia and British Columbia.

Businesses also increased investment in engineering structures (+3.4%) in 2025, after declining in 2024. The largest increase was recorded in Newfoundland and Labrador, which imported the West White Rose topside structure. Large increases in engineering structures were also recorded in Nunavut and Yukon, while the Northwest Territories, British Columbia and Manitoba posted declines in 2025.

Business investment in machinery and equipment was down for the second year in a row in 2025, led by lower spending on industrial machinery and equipment (-9.5%) as well as aircraft and other transportation equipment (-15.5%). Meanwhile, investment in computers and computer peripherals rose 14.1% in 2025, the largest increase since 2011.

Higher intermediate consumption, rather than wages, leads growth in government final expenditure

Real government final consumption expenditure increased 2.5% in 2025, slowing from a 3.8% rise in 2024. The 2025 increase was led by higher intermediate consumption, mainly in local municipalities, and provincial and territorial health and social services. Real compensation of employees within government increased in 2025, although at a slower pace than in 2024.

Across the country, real government final consumption expenditure rose the most in New Brunswick (+6.9%) in 2025, led by increased provincial general government spending. Quebec (+1.6%), Alberta (+1.3%) and British Columbia (+2.1%) recorded increases in government spending that were below the national increase, while government consumption expenditure fell in the Northwest Territories (-0.2%) and Nunavut (-0.5%).

International exports fall amid trade uncertainty

International exports fell 1.1% in 2025, led by lower shipments of intermediate metal products, mainly unwrought gold, followed by building and packaging materials, as well as industrial machinery and equipment.

Nunavut and the Northwest Territories reported the largest declines in international exports in 2025, driven by significantly lower exports of metal ores (Nunavut) and diamonds (the Northwest Territories). Meanwhile, Newfoundland and Labrador recorded a 10.3% increase in international exports, led by higher shipments of crude oil.

In 2025, international imports fell 0.4%, led by lower purchases of motor vehicles and parts, unwrought gold and industrial machinery and equipment. The Northwest Territories and Nova Scotia posted the largest declines in international imports, while Nunavut and Newfoundland and Labrador recorded the largest increases.

Internal trade, that is, trade between provinces and territories, increased as a share of total trade in 2025, as global uncertainty and the imposition of tariffs led to a decline in Canada’s international trade, particularly with the United States. All provinces and territories saw their internal trade share increase in 2025 relative to 2024, except for Newfoundland and Labrador and Yukon, where the internal trade shares fell. Nunavut (70.8%) continued to have the largest internal trade share across the country, while Ontario (27.8%) maintained the lowest share.

Farm inventories rebound in 2025 on record crop yields

Record crop production in 2025, particularly for wheat, canola and barley, led to historic accumulations in farm inventories. Saskatchewan accounted for nearly half of the build-up of farm inventory in nominal dollars, followed by Alberta.

In contrast, there were withdrawals of non-farm business inventories in 2025, the second consecutive annual drawdown following the record accumulation that occurred in 2022. The withdrawals in 2025 were broad-based across durable and non-durable goods within manufacturing industries as well as retail motor vehicles.

Compensation of employees continues to rise, although at a slower pace than the previous year

Compensation of employees rose 4.8% in 2025, following a 6.1% increase in 2024. Compensation rose across the country, except in the Northwest Territories, where wages fell.

The largest increases in employee compensation were in Nunavut (+7.9%), spurred by wage growth in mining and oil and gas extraction, followed by Nova Scotia (+6.7%), which was led by higher wages in health care and social assistance.

Corporate incomes rise overall, but industry-specific factors influence regional results

The gross operating surplus of corporations, or corporate incomes, increased 3.2% in 2025, up from the 0.3% rise in 2024, as both financial (+9.7%) and non-financial (+2.7%) incomes moved higher.

Corporations in Nunavut saw the largest gains in non-financial corporate incomes in 2025, as higher prices for gold bolstered mining profits, while the Atlantic provinces also recorded strong gains. Alberta and the Northwest Territories were the only regions where non-financial corporate incomes fell in 2025, and this was due to weaker incomes related to mining activities. At the same time, Alberta’s share of the non-financial surplus was nearly one-quarter, supported by resource-related incomes. Ontario (32.8%) and Quebec (16.9%) rounded out the top three provinces by share.

Financial corporate incomes were up in all provinces and territories in 2025, primarily on higher chartered bank incomes following no growth in 2024. Most (56.8%) of the financial surplus was attributable to Ontario, and this share has remained relatively stable over the past five years.

Household saving strengthens across most regions in Canada

Nationally, the household saving rate reached 4.4% in 2025, up from 3.7% a year earlier, as disposable income grew at a faster pace than nominal household spending.

Among the provinces, saving rates were highest in Quebec (8.6%) and Alberta (8.0%) in 2025. Ontario (3.4%) had a saving rate that was below the national average, but this net saving increased at an above-average pace relative to a year earlier. Households in British Columbia were among the lowest net savers, while those in the territories continued to record the highest household saving rates across the country. Households in Newfoundland and Labrador and Nova Scotia were negative net savers in 2025, meaning their nominal consumption expenditure surpassed their disposable income.

Interest payments on both mortgages and non-mortgage loans declined across all jurisdictions in 2025, as interest rates declined. The Bank of Canada began to lower its policy rate from June 2024 through October 2025, which helped ease household borrowing costs. Overall investment income, termed property income received, rose 2.2% in 2025, down from a growth rate of 12.7% a year earlier.

Households in Ontario (10.4%) and British Columbia (9.7%) had the highest debt service ratios in the country in 2025, as they held more average debt, especially for housing. Both provinces also recorded the largest reductions in their debt service ratios relative to other provinces.

Products

Provincial and territorial gross domestic product by income and expenditure accounts

The data visualization products “Provincial and territorial economic accounts: Interactive tool,” and “Provincial and territorial trade flows by detailed product classification,” which are part of Statistics Canada—Data Visualization Products (Catalogue number71-607-X), are available.

The document “Revisions to Canada’s GDP,” which is part of Latest Developments in the Canadian Economic Accounts (Catalogue number13-605-X), is available.

The Latest Developments in the Canadian Economic Accounts (Catalogue number13-605-X) is available.

The User Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-606-G) is available.

The Methodological Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-607-X) is available.

Gross domestic product by industry: Provincial and territorial (annual)

The data visualization product “Gross domestic product (GDP) by industry, provinces and territories: Interactive tool” was revised for the 2023 to 2025 period. This tool makes it easier for users to consult GDP data as part of Statistics Canada’s corporate vision to make data more accessible in useful ways.

Contact information

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