For the first time since the Korona pandemic … a sharp contraction in the Canadian economy

The Canadian economy witnessed a 0.4% shrinkage in the second quarter of the year on a quarterly basis, recording the largest decline since the peak of the Corona pandemic, according to the data issued by the Canadian Statistical Authority.

This decline is due to the slowdown in economic activity and investments, as a result of the United States imposing customs duties on Canadian imports. The contraction of the gross domestic product came as a result of a sharp decrease in the exports of commodities. On the background of the United States’ imposition of customs duties, Canadian exports fell by 7.5% in the second quarter of 2025 after they recorded 1.4% growth in the first quarter of it.