By John Q. Hosedrinker 
The Canadian economy experienced a stall in November 2025, with GDP measured at zero percent, following a 0.3% drop in October. Declines in goods production, particularly in the manufacturing sector (down 1.3%), offset gains in services. This downturn was significantly impacted by U.S. tariff policies, especially on Canadian manufacturing exports, leading to uncertainty and a cautious approach from businesses. The trade war showed accelerated weakness in the manufacturing sector and led the Canadian Chamber of Commerce to expect little rebound in December.
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Canada’s GDP saw 0% growth in the latest report, and honestly, that’s something of a surprise, isn’t it? Given everything going on in the world, and especially considering the pressures Canada is under, zero growth feels like a minor victory. We were expecting perhaps a negative number, so this is a bit of a relief, at least in the short term. The global landscape is uncertain, and there are significant headwinds, so it’s a testament to something that we are even managing to stay afloat.
This zero percent figure also prompts us to think about context. We’re talking about navigating a turbulent economic environment, and a key factor in this is clearly the relationship with our southern neighbour. Let’s face it, the economic strategies from that direction have been less than friendly. Considering the tariffs, the business uncertainty, and the general animosity, it’s pretty impressive that the Canadian economy hasn’t taken a bigger hit. Some might even say that it’s a sign of underlying strength and resilience.
Now, let’s talk about the situation with our neighbours. We’ve seen, that despite the challenges, the Canadian economy has not contracted and that’s a positive in the face of economic uncertainty south of the border. With the ongoing economic pressure from the USA, a stagnant GDP could have easily been a negative one, therefore, we can consider that a win. The USA’s own economic numbers and the associated negative reactions on social media make this all the more noteworthy.
It’s also important to remember that Canada’s economic situation has been a challenge for a while now. Some would argue the country was on a solid track before certain external factors came into play. The pandemic and subsequent recovery efforts complicated the economic picture. It’s really no shock that the path has been a little shaky. The reliance on certain sectors and trading partners has undoubtedly created vulnerabilities, and there’s a strong argument to be made for diversification, finding and expanding into new markets, and building a more resilient economic structure.
The concept of endless economic growth should also be questioned. The pursuit of growth should not be at the expense of our future, or the planet. The zero percent GDP growth could be viewed from another angle: a moment to consider other perspectives for success, beyond the relentless pressure of constant expansion. This could be viewed as a signal that the situation is stable.
Now, let’s consider what the future holds. There are significant risks on the horizon, but if the economy remains stable, and policies are carefully managed, then there is the potential to rebuild and reshape certain sectors. However, if trade deals change, then steep declines in GDP growth could be experienced in the coming years.
The challenges are considerable, but we also have strengths. A stable GDP growth, in an uncertain environment can only be considered a victory. The fact that Canada’s economy is not in a free fall, is something to be thankful for.