The Globe and Mail reports in its Saturday edition that Canada's economy was heating up heading into 2025, with Statistics Canada saying Friday that real gross domestic product rose 2.6 per cent on an annualized basis in the fourth quarter. A Canadian Press dispatch to The Globe says that is well above calls from the consensus of economists polled by Reuters ahead of the release, as well as the Bank of Canada, both of which expected real GDP to rise 1.8 per cent annualized. Statscan said household spending in the quarter rose at its fastest pace in more than two years. The surge was driven by purchases of new trucks, vans and sport utility vehicles. "Canada's economy showed some evident sparks of life in the final quarter of 2024 as it responded to lower interest rates and a sales tax holiday, but that flame could still be extinguished in 2025 if the country faces a tariff wall," Avery Shenfeld, chief economist at CIBC Capital Markets, said in a note. He said capital spending will likely be restrained in the first quarter because of the uncertainty and a trade war with broad and significant tariffs could "easily snuff out growth. That risk could dull market reactions to what was otherwise a better than expected report."