Canada Economy Expands 3.3% in Q2, Beating Bank of Canada Forecast

Canada's economy rebounded in the second quarter, expanding at an annualized 3.3% pace.

This marks a stronger-than-expected recovery after the economy contracted slightly in the first quarter and gives the Bank of Canada less urgency to cut interest rates.

The quarterly expansion matched economists' expectations but was well above the Bank of Canada's roughly 2.5% annualized forecast for the quarter.

The rebound was supported by stronger activity across the economy, building on gains in April and May, particularly in oil and gas, construction, real estate, and manufacturing.