Statistics Canada released data on gross domestic product Friday. Photo by THE CANADIAN PRESS/Darryl Dyck

The Canadian economy contracted in the second quarter due to “significant declines” in the export of goods and decreased business investment in machinery and equipment, Statistics Canada reported Friday.

Real gross domestic product (GDP) , which measures the total monetary value of goods and services produced in a country, declined 0.4 per cent after a 0.5 per cent gain the previous quarter, the national statistics agency said.

Annualized, the economy shrank 1.6 per cent in the second quarter, slowing from growth of two per cent in the first quarter of 2025.

Exports declined by 7.5 per cent in the quarter, after rising 1.4 per cent in the first quarter.

“As a consequence of

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