06:59 AM EDT, 05/02/2025 (MT Newswires) -- Statistics Canada's provincial gross domestic product release indicates the country's economy expanded 1.6% last year, said Bank of Montreal (BMO).

That's a tenth above the national accounts figures, pointing to some upward revisions to 2024 when the Q1 report is published at the end of the month.

All Canadian provinces posted economic growth last year, driven by the Atlantic and Prairie regions, as Prince Edward Island (+3.6%) led the way, noted the bank. Central Canada and British Columbia brought up the rear with growth just above 1%.

Nationally, growth was driven by services, especially in real estate as the Bank of Canada cut rates through the second half of the year. An increase in oil and natural gas extraction drove growth in Alberta and a rebound in Newfoundland and Labrador, while mining and quarrying supported the expansion in Saskatchewan.

While the provincial figures add some upside to an already decent picture for 2024 growth, that is a look in the rearview mirror, given the trade war with the United States, according to BMO. Ultimately, the outlook for 2025 will be determined by the direction of tariffs throughout the year.