Canada's Economy Bounces Back Strongly in Q2 with 3.3% Annualized GDP Growth

The Canadian economy bounced back strongly in Q2 with a real GDP increase of 3.3% annualized, following an upward revision to Q1 growth from -0.1% to 0.3%

The rebound was driven by a reversal of temporary weakness earlier in the year, with net trade contributing substantially to growth as exports outpaced imports

Household spending strengthened despite higher fuel costs, business investment increased alongside stronger equipment imports, and residential investment recovered as home resales and housing starts improved

The Q2 rebound extended beyond trade, with final domestic demand rising 3.9% annualized after edging lower in Q1