Canada's economy grew 2.2% annualized in Q1 as businesses raced to beat tariffs

Statistics Canada says the economy outperformed expectations in the first quarter of the year as businesses raced to get ahead of looming tariffs from the United States.

The agency says real gross domestic product grew at an annualized pace of 2.2 per cent in the first quarter, a tenth of a point higher than the previous quarter.That topped StatCan's own early estimate of 1.5 per cent growth and a Reuters poll of economists calling for a gain of 1.7 per cent.

The agency says goods exporters were propelling the Canadian economy forward in the first quarter. Statistics Canada points to businesses wanting to get ahead of the looming tariff dispute with the United States as driving up both imports and exports in the early months of 2025.

Figures for March show growth of 0.1 per cent in real GDP, and StatCan's advance estimates expect the economy kept growing at the same pace in April.