Canada Posts 3.3% Q2 Growth as Q1 Revision to 0.3% Quells Recession Fears
Updated
Updated · BNN Bloomberg · Aug 28
Canada Posts 3.3% Q2 Growth as Q1 Revision to 0.3% Quells Recession Fears
3 articles · Updated · BNN Bloomberg · Aug 28
Summary
Statistics Canada said real GDP grew at a 3.3% annualized pace in Q2, the fastest since early 2023 and above the Bank of Canada’s 2.5% forecast.
Exports rose 3.6%, residential investment strengthened with a hotter spring housing resale market, and business capital spending climbed 2.3%, ending five straight quarterly declines.
June GDP increased 0.3% on broad-based gains, helped by World Cup tourism and a third straight monthly rise in tariff-sensitive manufacturing.
July’s early estimate was flat, with the World Cup boost fading and manufacturing losing momentum before new 50% U.S. tariffs on Canadian goods took effect last weekend.
Q1 GDP was revised up to 0.3% from a previously reported contraction, easing recession worries, but economists still expect the Bank of Canada to hold its 2.25% rate on Sept. 2.