Canada’s economy is estimated to have grown at an annualized 1.5% in this year’s first quarter, outpacing the U.S. whose economy contracted by 0.3% during the first three months of 2025.
Statistics Canada says the national economy likely grew 1.5% on an annualized basis in Q1, avoiding a contraction that could lead to a recession. That forecast is based on the Canadian economy growing 0.4% in January, contracting 0.2% in February, and then growing 0.1% in March.
These are preliminary results and final data for March and the first quarter will be released later in May. However, the initial outcome is a positive development for the economy and Canada’s financial markets that are comprised of stocks such as Restaurant Brands International (QSR), Canada Goose (GOOS), and Constellation Software (TSE:CSU).
Gross Domestic Product (GDP) in Canada has remained buoyant due to growth in economic sectors such as mining, oil and gas extraction, and retail sales. Manufacturing has been a particular bright spots for the economy, driven in Q1 by increased demand from U.S. buyers who were trying to get ahead of President Donald Trump’s import tariffs.
Overall, Canada’s manufacturing sector rose 0.6% in February, increasing for the second month in a row. Machinery manufacturing grew 5.9% and contributed most to the increase in that category. Those gains were partially offset by declines in transportation and warehousing, as well as softening in the real estate market.
Restaurant Brands International, one of Canada’s leading stocks and owner of the Burger King, Popeyes, and Tim Hortons brands, is flat on the year, having gained 0.05% in 2025.