Canada's economy posts strong growth in Q2

OTTAWA: Canada's economy experienced robust growth in the second quarter of this year, according to Statistics Canada, which reported on Friday. The country's real gross domestic product (GDP) expanded at an annualized rate of 3.3 percent, surpassing the previous quarter's contraction.

The national statistical agency revised its figures, changing the first quarter's annualized real GDP growth from a previously reported 0.1 percent contraction to a 0.3 percent gain. This revision indicates that the Canadian economy managed to avoid a technical recession, defined as two consecutive quarters of contraction, instead showing a significant recovery.

The agency attributed the second-quarter growth primarily to a rebound in exports and business capital investments. Exports saw a 3.6 percent quarter-on-quarter increase, marking the largest gain in over three years. Notably, exports of passenger cars and light trucks bounced back strongly.

Moreover, household consumption and residential investment also contributed positively to economic growth. On a monthly basis, real GDP expanded by 0.3 percent in June, marking the third consecutive month of growth. Active performances were observed across various sectors, including services, wholesale and retail trade, and manufacturing.

However, preliminary estimates released by Statistics Canada suggest that GDP may have remained flat in July due to rising trade uncertainties. This indicates a potential slowdown in economic momentum at the beginning of the third quarter.