Canadian households are set to open their wallets wide this festive season, with planned spending projected to deliver a significant jolt to the national economy. According to a recent analysis, the average Canadian intends to spend $943 on holiday-related purchases.
A Multi-Billion Dollar Boost for the Economy
This collective consumer confidence is expected to translate into a substantial $11 billion boost for Canada's Gross Domestic Product (GDP). The surge in spending comes at a pivotal time, offering a welcome lift to economic activity as the year draws to a close. The data highlights the critical role consumer behaviour plays in driving national economic growth, especially during the traditional retail peak season.
The 'Buy Canadian' Movement Gains Momentum
Pierre Cléroux, the chief economist at the Business Development Bank of Canada (BDC), recently discussed these trends in an interview with BNN Bloomberg. He pointed to a noticeable shift in purchasing habits, with a growing 'Buy Canadian' trend emerging among shoppers. This preference for domestically produced goods and services is occurring against a backdrop of ongoing international tariff tensions, which may be influencing consumer decisions to support local businesses and supply chains.
Cléroux's insights suggest that Canadians are becoming more mindful of the origin of their purchases, potentially seeking to bolster the domestic economy and navigate global trade uncertainties. This conscious consumerism could have lasting benefits for Canadian retailers, manufacturers, and service providers well beyond the holiday period.
Broader Economic Implications
The anticipated $11 billion infusion into the GDP is a powerful indicator of consumer sentiment and financial health. Such a substantial increase in discretionary spending signals that, despite broader economic challenges like inflation and interest rates, many Canadians are willing and able to participate in seasonal traditions and gift-giving. This activity supports jobs across retail, logistics, hospitality, and manufacturing sectors, creating a positive ripple effect throughout the economy.
While the holiday season is a temporary spike, the strength of this spending period can set a tone for economic momentum heading into the new year. Analysts will be watching closely to see if the 'Buy Canadian' trend continues and how it shapes the retail landscape and domestic production in 2026.
