Canada Posts Best Quarterly Growth in More Than Three Years

Canada's economy has experienced its best quarterly growth in more than three years, according to official data released on Friday. The country's GDP grew by a greater-than-expected 0.3% in May and is expected to reach an annualized second-quarter performance of 3.4%. This surpasses the Bank of Canada's forecast of 2.5%, indicating a strengthening economy.

The Statistics Canada data showed that April's growth was revised up to 0.6% from 0.5%, marking the highest month-on-month gain since July 2025. The central bank had predicted that growth would strengthen in the second half of the year as inflation pressures eased and firms adapted to US tariffs.

Analysts noted that one-off factors such as the FIFA soccer World Cup, hiring for a national census, and the postponement of oil facility maintenance contributed to the increased growth. Despite this, money markets are pricing in a hold on interest rates for the rest of the year.