Canada's Economy Avoids Recession with Strong Q2 Growth

Canada's economy has shown strong growth in the second quarter of this year, according to Statistics Canada. The country's real gross domestic product (GDP) grew at an annualised rate of 3.3 per cent in Q2.

The agency revised the first quarter's annualised real GDP growth from a previously reported 0.1 per cent contraction to a 0.3 per cent gain, avoiding a 'technical recession' defined as two consecutive quarters of contraction.

Exports were the main driver of this growth, increasing by 3.6 per cent quarter-on-quarter and recording their largest gain in over three years. Exports of passenger cars and light trucks rebounded most notably.

However, preliminary estimates suggest that GDP likely remained flat in July due to rising trade uncertainties, signaling a potential slowdown in economic momentum at the start of the third quarter.