Canada GDP Growth Surges to 3.3% in Q2 as Exports and Domestic Demand Recover

Canada's economy rebounded strongly in the second quarter of 2026, growing at an annualized rate of 3.3%, according to data released by Statistics Canada on August 28, 2026.

The report shows that exports rose 3.6% in the second quarter, the largest increase in over three years, driven by a significant jump in exports. Domestic demand also rebounded to 1%, after a slight contraction in the previous quarter.

Household final consumption expenditure, a key measure of consumer spending, increased 0.8%, its highest level in three quarters. This healthy domestic demand suggests that the economy is gradually shaking off the effects of over 18 months of U.S. import tariffs that have disrupted North American supply chains and raised costs.

The strong consumption and expenditure pattern positions Canada to withstand a new 50% U.S. import tariff imposed by President Donald Trump, as the country has responded with its own counter-measures on U.S. imports.