Dec 3, 2025
Canada’s economy is powered by a blend of resource production, advanced manufacturing, real estate activity and a wide range of services and, according to Statistics Canada, the nation’s real Gross Domestic Product (GDP) eeked up 0.2% from August to September, reaching $2.331 trillion (1).
Services dominate — but goods industries are crucial drivers
These recent numbers, released in early December from Statistics Canada, shows anemic growth for Canada's economy, with services-producing industries still making up the majority of GDP.
To be clear, Canada's GDP is used as a proxy for how well the nation's economy is doing. GDP captures the total value of all goods and services produced within a country’s borders over a specific period. In September 2025, Canada's services economy totalled $1.74 trillion of real GDP. Despite the dominance of service-producing industries, many goods-producing sectors are now playing an outsized role in economic growth — helping to bolster the nation's economy during an economically uncertain time.
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Overall GDP rose 0.2% in September, boosted mainly by goods production, which increased 0.6%, compared with a modest 0.1% rise in services. Much of this momentum came from manufacturing, mining and oil and gas extraction, and construction.
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The industries contributing most to GDP — and why they matter
Real estate, rental and leasing — 13.2% of GDP
- Sector GDP (Sept. 2025): $308.3 billion
- Share of total GDP: ~13.2%
Real estate remains the single largest contributor to Canada’s GDP. Although the sector slipped slightly in September (-0.1%), it expanded 1.0% in the third quarter due to stronger home resale activity. Markets in the Greater Toronto–Hamilton Area and Metro Vancouver were key drivers, lifting related industries like legal services.
The dominance of real estate highlights how closely Canada’s economic momentum is tied to its housing market.
Manufacturing — 8.7% of GDP
- Sector GDP (Sept. 2025): $202.9 billion
- Share of total GDP: ~8.7%
Manufacturing was the biggest source of growth in September, expanding 1.6% — the strongest sector-wide gain of the month. Durable goods grew 2.1%, with machinery and wood products leading the way at +5.5% each. Motor vehicle and parts production also rose 3.7% as Ontario plants resumed operations after summer retooling shutdowns.
Manufacturing remains vital for exports, industrial investment and employment across central Canada.
Mining, quarrying, and oil and gas extraction — 5.2% of GDP
- Sector GDP (Sept. 2025): $120.7 billion
- Share of total GDP: ~5.2%
This sector grew 0.3% in September and surged 1.8% in the third quarter — the strongest quarterly growth of any major industry. Oil sands extraction jumped 1.3% as facilities increased synthetic crude production following earlier maintenance. Conventional oil and gas extraction rose 0.5%, while support activities climbed 1.6%.
Energy continues to be one of Canada’s most globally competitive and export-driven industries.
Finance and insurance — 7.6% of GDP
- Sector GDP (Sept. 2025): $177.5 billion
- Share of total GDP: ~7.6%
Finance and insurance grew 0.2% in September and 0.8% in the third quarter — its eighth straight quarterly gain. Growth in mutual fund activity was strong as the TSX hit all-time highs.
This sector is critical for mortgages, lending, investment markets and household financial stability.
Construction — 7.3% of GDP
- Sector GDP (Sept. 2025): $170.2 billion
- Share of total GDP: ~7.3%
Construction dipped 0.2% in September after four months of growth, driven by a 1.4% drop in new multi-unit residential construction. However, on a quarterly basis, the sector expanded 1.3%, thanks to a 4.4% increase in engineering and other major construction projects.
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The strength of engineering construction reflects major infrastructure spending across the country.
Wholesale trade — 5.4% of GDP
- Sector GDP (Sept. 2025): $126.7 billion
- Share of total GDP: ~5.4%
Wholesale trade rose 0.6% in September — its fourth increase in five months. A 3.4% jump in building materials wholesalers and a 1.6% rise in food, beverage and tobacco wholesalers led the gains.
Wholesale activity is a key indicator of business supply chain health and inventory flows.
Retail trade — 5.3% of GDP
- Sector GDP (Sept. 2025): $124.0 billion
- Share of total GDP: ~5.3%
Retail trade was the largest drag on GDP in September, falling 0.7%. Weakness was concentrated among new car dealers, general merchandise stores, and gasoline stations, though food and beverage stores grew 0.4%.
This decline suggests continued consumer caution amid high interest rates and elevated living costs.
Professional, scientific and technical services — 7.2% of GDP
- Sector GDP (Sept. 2025): $167.6 billion
- Share of total GDP: ~7.2%
This high-value sector — which includes legal, accounting, engineering, consulting and tech services — dipped slightly in September (-0.2%), but remains a long-term growth engine for Canada’s shift toward a knowledge-based economy.
What this tells us about Canada’s economy
The GDP breakdown makes several trends clear:
1. Real estate, energy and manufacturing anchor Canada’s economy
These sectors — together accounting for over 27% of GDP — drive growth, exports and employment.
2. Goods-producing sectors drive economic volatility
When manufacturing, construction or energy expands, national GDP rises. When they contract, GDP weakens quickly.
3. Consumer-facing sectors are mixed
Wholesale is improving, but retail’s decline is a cautionary signal that households are still under significant financial strain.
4. Knowledge and financial sectors remain strong pillars
Finance and professional services are critical for long-term economic resilience and modernization.
Read more: The ultra-rich are bailing on volatile stocks right now — these 4 shockproof assets are their new safe havens
Why it matters
Understanding which industries contribute most to GDP helps Canadians interpret economic headlines, investment trends and policy decisions. It also highlights the country’s economic vulnerabilities — such as reliance on energy markets and housing activity — and points toward areas of long-term growth, including tech-driven professional services.
As Canada moves into 2026, these core sectors will shape economic conditions, job markets and government revenues, determining how resilient the economy will be against global uncertainty.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Statistics Canada (1)
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Romana King is the Senior Editor at Money.ca. She writes for various publications, and her book -- House Poor No More: 9 Steps That Grow the Value of Your Home and Net Worth -- continues to be an Amazon bestseller. Since its publication in November 2021, this book has won five awards, including the New York CPA Society's Excellence in Financial Journalism (EFJ) Book Award in 2022.
