Defence Spending Will Lift Canada’s Economy, but Not out of a Recession: Report

Defence Spending Will Lift Canada’s Economy, but Not out of a Recession: Report
A Canadian Armed Forces Chinook helicopter hovers as a WestJet airplane passes by while dignitaries arrive in Calgary, to attend the G7 Leaders meeting taking place in the nearby community of Kananaskis, on June 15, 2025. The Canadian Press/Jeff McIntosh
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Ottawa’s ramped up defence-spending plans will give the economy a lift, but not enough to save it from a recession, a newly released report forecasts.

The updated analysis from Oxford Economics published Wednesday projects that Canada’s defence spending commitments will raise the country’s real gross domestic product by a tenth of a percentage point this year and next.