The Digester

Canada Economy Shrinks 0.6% in Q4 as Business Inventories Fall

Feb 27th 2026

Real GDP declined at an annualized rate of 0.6% in the fourth quarter, pulled down by a sharp drop in business inventories. The decline was partially offset by stronger household spending, exports, and government capital investment, Statistics Canada said.

  • Real gross domestic product fell an annualized 0.6% in the fourth quarter.
  • The contraction was driven by a sharp decline in business inventories.
  • Growth was partly offset by increased household spending, higher exports, and greater government capital spending.
  • Statistics Canada released the report on February 27, 2026.