Canada economy at a glance

Latest figures for Canada: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open Canada on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	3.1%	September 2026	3.0% August 2026
Core inflation (excluding food and energy)	1.8%	September 2026	1.9% August 2026
Real GDP growth (year on year)	1.1%	Q2 2026	0.1% Q1 2026
Policy rate (Bank of Canada)	2.50%	November 2026	2.50% October 2026
Unemployment rate	6.5%	September 2026	6.4% August 2026
10-year government bond yield	3.78%	October 2026	3.99% September 2026
Manufacturing PMI (S&P Global Canada Manufacturing PMI)	49.6	October 2026	51.5 September 2026
Retail sales (year on year)	5.4%	August 2026	5.1% July 2026
Industrial production (year on year)	1.1%	August 2026	1.7% July 2026
Wages (year on year)	3.2%	Q3 2026	3.4% Q2 2026
House prices (year on year)	−2.0%	Q3 2026
Stock market (S&P/TSX Composite)	35,605	November 2026	+13.5% over 12 months

Questions and answers

What is the inflation rate in Canada?

Canada's annual inflation rate was 3.1% in September 2026, up from 3.0% in August 2026.

What is the interest rate in Canada?

The Bank of Canada target for the overnight rate is 2.50% (as of November 2026). The next rate decision is due on 9 December 2026.

How fast is Canada's economy growing?

Canada's real GDP grew 1.1% year on year in Q2 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 1.1% in 2026 and 1.7% in 2027.

What is the unemployment rate in Canada?

Canada's unemployment rate was 6.5% in September 2026, up from 6.4% in August 2026.

What is Canada's 10-year government bond yield?

Canada's 10-year government bond yield averaged 3.78% in October 2026.

How much government debt does Canada have?

Canada's government debt is about 114.0% of GDP (latest annual figure), with a budget deficit of 2.5% of GDP.

What is Canada's credit rating?

Canada's sovereign credit ratings: S&P AAA, Moody's Aaa, Fitch AA+.

What is the VAT rate in Canada?

Canada's standard VAT rate is 5% (2026 rules).

What is the corporate tax rate in Canada?

Canada's corporate income tax rate is 26.0% (2026 rules).

Who leads Canada?

Canada is led by Prime Minister Mark Carney (Liberal); head of state King Charles III, represented by the Governor General. Next election: Federal election due by October 2029 under the fixed-date law.

Outlook

The Bank of Canada's October Monetary Policy Report sees growth of 1% in 2026 and 2% in 2027 and 2028, with inflation reaching about 3.5% by the end of 2026 and returning to 2% by mid-2028. The Bank raised its rate to 2.50% on 28 October and said further increases may be needed, but GDP stalled in August and probably fell in September. Upside risks are firmer energy-export revenue, resilient retail spending and a trade deal with the US now that talks have resumed; downside risks are deeper US tariffs and a failed CUSMA renewal hitting autos, steel and lumber, a weakening labour market (68k jobs lost in September), and a sovereignty push from Quebec's new government, while Alberta's vote to stay has removed one source of uncertainty.

Why Canada matters for the world economy

Canada matters to the world mainly as a commodity supplier: it is the largest foreign source of US crude oil and a major exporter of natural gas, potash, uranium, aluminium, gold and grains, so its output cushions the global energy shock from the Iran war and its trade spat with Washington touches North American energy and auto supply chains. With about 72% of goods exports going to the US, Canada is chiefly a receiver of US shocks, but tit-for-tat tariffs on steel, lumber (US duties near 35%) and autos raise costs for US manufacturers and builders. Alberta's 19 October vote to remain in Canada has eased fragmentation risk around the oil sands, while Ottawa's push to diversify toward the EU, UK and India is gradually redirecting trade flows.

Politics

Carney's government faces a re-escalating trade war: talks with Washington broke down over the summer, the US imposed new tariffs in late August, Ottawa retaliated in September and the US Commerce Secretary has accused Carney of sinking talks for domestic political reasons. Separation risk eased when about three in four Albertans voted on 19 October to stay in Canada rather than start a legal process toward a binding independence vote (unofficial count; official results due 29 October). In Quebec, the sovereigntist Parti Québécois won the 5 October election and leads a minority government that promises a sovereignty referendum, but not before 2029. A fall federal budget focused on competitiveness, skilled trades and trade diversification is pending.

System: Federal parliamentary constitutional monarchy.

Economy and taxes

GDP: US$2,320 billion
Population: 41.6 million
Government debt: 114.0% of GDP
Budget balance: −2.5% of GDP
Current account: −1.4% of GDP
Exports: 32.5% of GDP
Main exports: Crude oil and natural gas, motor vehicles and parts, gold and precious metals, machinery, aluminium and other metals, lumber and forest products, potash and fertilisers, grains and canola
Top export markets: United States (72.3%), United Kingdom (6.0%), China (4.5%), Japan (1.9%), Netherlands (1.2%)
IMF growth forecast: 1.1% in 2026, 1.7% in 2027
IMF inflation forecast: 2.8% in 2026, 2.4% in 2027
Currency: CAD
Freelancer tax: A self-employed person earning the average wage (CAD 78,532 a year) pays about 27.5% of it in income tax and social contributions (2026 rules)
Top income tax rate: 53.5%
Gold reserves: 0.0 tonnes (September 2026)
Energy self-sufficiency: 179% (2024)

Recent news

4 November 2026 Energy and gold mask a slide in Canada's other exports in September BNN Bloomberg (Canadian Press)
The merchandise trade surplus widened to C$5.4bn in September as energy and gold exports rose more than 8%. Excluding those, exports fell 5.6%; economists blamed the latest US tariffs and expect trade to weigh on growth this quarter.
3 November 2026 Canada and the US restart trade talks after a Trump-Carney call BNN Bloomberg (Canadian Press)
After a weekend call with Carney, Trump said the two countries were very close to a good deal. Talks that broke off in August are resuming on US tariffs on steel, aluminium, lumber and cars, and manufacturers called the news encouraging.
30 October 2026 Canada's economy stalls in August and likely shrank in September Statistics Canada
Real GDP was essentially unchanged in August, the second flat month in a row, and an early estimate points to a 0.1% fall in September. Statistics Canada still sees growth of about 0.3% for the third quarter, helped by a rebound in retail.
28 October 2026 Bank of Canada raises its key rate to 2.50% to stop the energy shock spreading Bank of Canada
The Bank of Canada lifted its overnight rate by a quarter point to 2.50%, saying high energy prices are making inflation more persistent. It now expects inflation near 3.5% by the end of 2026 and growth of 1% this year, and said further hikes may be needed.
26 October 2026 Markets bet the Bank of Canada will raise rates this week BNN Bloomberg (Canadian Press)
Traders priced just over 83% odds of a quarter-point hike to 2.50% on 28 October, after seven straight holds, as gasoline-driven inflation reached 3.1%. Some economists see a hold because the economy shed 68,000 jobs in September.
23 October 2026 Canadian retail sales rise 1.2% in August Statistics Canada
Canadian retail sales rose 1.2% to C$74.6bn in August and were also up 1.2% in volume terms. An early estimate points to a further 0.7% gain in September, a sign that consumers are holding up despite job losses.

Headlines and summaries are compiled daily from the linked reports with AI assistance.