Canadian GDP, Income, and Expenditures for Q1
Gross domestic product, income and expenditure, first quarter 2025
On Friday, Statistics Canada (StatCan) reported that real gross domestic product (GDP) rose 0.5% in Q1, matching the pace recorded in 2024Q4. Growth in Q1 was driven primarily by goods exports, followed by an accumulation of business non-farm inventories. However, higher imports and weak resale activity in the residential sector partially offset the overall gains.
On a per capita basis, real GDP increased 0.4% in Q1, up from a 0.1% gain in 2024Q4. Final domestic demand—which includes total final consumption expenditures and investment in fixed capital—was unchanged for the first time since the end of 2023.
Residential investment fell 2.8% in Q1, largely due to an 18.6% drop in ownership transfer costs, a measure of resale market activity. This marked the largest decline in ownership transfer costs since 2022Q1, when they fell 34.8% amid a series of interest rate hikes. Despite the decline in resales, new construction rose 1.7%, led by increased work put in place for apartments, especially in Ontario. Renovation activity edged up 0.5% over the quarter.
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