How fast is Canada's economy growing?

Latest release GDP, Apr & Q1 2026

Growth is running at 1.1% year-over-year, just below potential. Real GDP rose 0.5% in April after a soft first quarter, and while momentum is uneven, the data don't point to a recession underway.

Plate 01 Headline real GDP, m/m and Y/Y

As of Apr 2026

Headline growth is running at 1.1%, just below potential.

MONTH-OVER-MONTH, %20252026-0.20.00.20.40.6%YEAR-OVER-YEAR, %Potential ~1.2%2024202520260.01.02.03.0%

Monthly real GDP rose 0.5% in April, lifting the year-over-year pace to 1.1%. That now sits just shy of the 1.2% near-term potential growth estimate.

Source: Statistics Canada Table 36-10-0434-01 (monthly real GDP by industry); potential growth reference from BoC Monetary Policy Report, April 2026, Appendix (2026 estimate 1.2%).

Plate 02 Contributions to quarterly growth, by bucket

As of Q1 2026

A standstill, not a recession.

Final domestic demandTrade netInventoriesTotal2023202420252026-10.0-7.5-5.0-2.50.0+2.5+5.0+7.5pp

Q1 GDP edged down 0.1% annualized, the second consecutive negative quarter after Q4 2025's inventory-led 1-point drag. At that scale Q1 growth sits closer to statistical noise than economic signal, and is well inside StatCan's typical revision band.

Source: Statistics Canada Table 36-10-0104-01 (quarterly expenditure-side contributions to growth).

Plate 03 Real GDP by industry, services vs goods Y/Y + manufacturing vs mining and oil indexed to Jan 2023

As of Apr 2026

Resources have outrun factories by 20 percentage points since January 2023.

SERVICES VS GOODS, Y/Y-2.002.04.0%202420252026ServicesGoodsINDEXED TO JAN 2023-10.0010.0202420252026Mining &oilFactories

Mining and oil-and-gas output is up roughly 14% since January 2023; manufacturing is down about 6% — a 20-point split inside the goods economy. Services, which employ most Canadians, are running at about 1% year-over-year. The divergence maps cleanly onto Canada's regional economic geography: resource provinces pulling one direction, central-Canada factory floors pulling the other.

Source: Statistics Canada Table 36-10-0434-01 (monthly real GDP by industry).

Plate 04 BoC MPR output gap

As of Q4 2025

The output gap reopened to 1% in Q4 — a hold story, not a hike one.

RECESSION (2020Q1-Q2)20112014201720202023-6.0-4.0-2.00.0+2.0%

The Bank of Canada's output gap estimate widened to -1.0% in Q4 from -0.5% in Q3, the deepest reading since early 2021. The shortfall is demand-side: not enough spending to absorb the economy's productive capacity. A gap this size keeps the easing bias intact and takes a near-term hike off the conversation.

Source: Bank of Canada Monetary Policy Report, April 2026 (Valet INDINF_OUTGAPMPR_Q).

Plate 05 Total vs per-capita real GDP, indexed to pre-pandemic baseline (Q4 2019)

As of Q1 2026

Total output is up about 11% since the pre-pandemic peak — per-capita output is barely above it.

+11% TOTAL REAL GDP 2020 2022 2024 -10 -5 0 +5 +10% +1.1% PER-CAPITA REAL GDP 2020 2022 2024

Total real GDP has grown about 11% since Q4 2019; on a per-person basis, output has risen about 1%. The 10-point wedge is the population story — Canada has added nearly 3.6 million people in that span, accounting for almost all of the headline growth without materially lifting living standards.

Source: Statistics Canada Tables 36-10-0104-01 and 17-10-0009-01; per-capita and indexation by Sibley Creek.