Ottawa: The Canadian economy grew by 2.2% in the first quarter of 2025, driven by a significant increase in the country's exports.

According to Qatar News Agency, Statistics Canada, the country's national statistics agency, revealed in a report that exports, led by automobiles and industrial machinery, rose by 1.6% in the first quarter of 2025, following a 1.7% increase in the fourth quarter of 2024. Imports also rose by 1.1% in those three months. Canadian household spending declined by 0.3% following a rise in the fourth quarter of last year, and the wholesale sector also recorded a buildup of inventories.

Statistics Canada said that goods exports drove growth in the first quarter of 2025, as GDP growth in the previous quarter was revised downward to 2.1%. It emphasized that growth exceeded expectations, but the buildup of inventories and the decline in household spending indicate potential warning signs for the economy going forward.