Canadian economy falling into recession thanks to Trump tariffs, Crown corporation forecasts

Export Development Canada is forecasting economic growth of just 0.9 per cent for 2025, inching up next year to just one per cent

OTTAWA — A Crown corporation is forecasting that the Canadian economy will officially fall into a recession this calendar year, part of a global downturn directly linked to U.S. President Donald Trump’s tariff policies.

Export Development Canada (EDC) is forecasting economic growth of just 0.9 per cent for 2025, inching up next year to just one per cent. That growth rate for Canada this year is below that of the United States (1.7 per cent) and the average for developed economies (1.3 per cent) but stronger than Germany and France (0.3 and 0.6 per cent, respectively).