Canada’s economy grew in the final months of 2024, even as the shadow of U.S. President Donald Trump‘s threatened tariffs looms over the country.
Statistics Canada said Canada’s GDP grew by 0.6 per cent in the fourth quarter of 2024, compared to 0.5 per cent in the third quarter.
This was led by household spending, which saw an increase of 1.4 per cent – the strongest growth since the second quarter of 2022.
The GDP estimates come just days before Trump’s sweeping tariffs on Canada are scheduled to go into effect. Several economists, including Bank of Canada governor Tiff Macklem, have said broad-based tariffs by the United States would be devastating for Canada’s economy.
“In the pandemic, we had a steep recession followed by a rapid recovery as the economy reopened,” Macklem said last week. “This time, if tariffs are long-lasting and broad-based, there won’t be a bounceback.”
Macklem said while Canada could recover part of the growth, the damage would be long-lasting.