Canada Economy Rebounds, But Trade Uncertainty Persists

Canada's economy regained momentum in the second quarter, easing recession concerns after a stronger-than-expected rebound. The country's Q2 GDP grew at an annualized rate of 3.3%, up from a revised 0.3% in Q1, according to S&P Global Ratings.

The surge in exports drove the growth, with goods exports increasing by 21%. Imports also rose, but at a slower pace of 1.1%. Household spending grew 3.3%, and business fixed investment contributed to the recovery momentum.

However, trade uncertainty with the U.S. remains a significant concern for Canada's economy. The output gap is expected to narrow only gradually over the next year due to this ongoing uncertainty.