Canada Posts Strong Q2 Growth on Energy Sector Boom

The Canadian economy is expected to post a strong rebound in the second quarter, driven by a surge in energy production.

According to Statistics Canada's industry-based output data, real gross domestic product expanded at an annualized rate of 3.4% between April and June, exceeding the Bank of Canada's projection of 2.5% growth.

The oil industry had its highest crude production volume for the month of May since at least 2016, with extraction from the western oil sands up 12.4% from the same month last year.

The strong demand is partly due to reduced supply coming out of the Middle East following the US-Iran conflict.