Canada Economy Bounces Back with Strong Q2 Growth
Canada's economy bounced back in Q2 2026 after a slow first quarter, driven by a sharp increase in exports and household spending. The real gross domestic product (GDP) rose by 3.3% annualized in the second quarter, led by a 3.6% increase in exports.
Exports saw a significant boost from passenger cars and light trucks, with a 27% increase in June, marking the strongest quarterly gain since Q1 2023. Household final consumption expenditure also increased by 0.8%, driven primarily by higher spending on financials, mutual funds, and other investment services.
Business capital investments saw healthy growth this quarter, with business investment bolstered by higher spending on machinery and equipment, reaching its highest level since Q2 2024. However, inventories fell as businesses withdrew $17 billion in the second quarter after building up stock $10 billion in the first quarter.