Canada Posts 3.3% Annualized Growth as Economy Rebounds

Canada's economy has finally returned to growth after contracting in the previous two quarters. The country's real gross domestic product (GDP) increased by 0.8% in the second quarter, marking its first expansion since Q1.

The growth was driven largely by exports, which rose 3.6% in the quarter. This is the largest increase since the first quarter of 2023 and was led by an increase in shipments of passenger cars and light trucks, as well as metals and energy products such as oil and natural gas.

On an annualized basis, Canada's economy grew at its fastest pace in three years, with a growth rate of 3.3%. Business capital investments also increased, with engineering structures rising by 2.3% after two consecutive quarters of declines.