Canada's Economy Bounces Back with Strong Q2 Growth

Canada's economy has rebounded sharply in the second quarter after six months of stagnant growth. The country's GDP grew at an annualized rate of 3.3% in Q2, following a revised 0.3% contraction in Q1, according to Statistics Canada.

This recovery was driven by strong domestic demand, led by consumer spending and business investments, which signals the economy is slowly recovering from the impacts of US tariffs that upended North American supply chains and increased costs.

Exports also played a significant role in the growth, with outbound shipments increasing 3.6% - its fastest pace in over three years. This growth was higher than the Bank of Canada's forecast of 2.5% growth it projected in July.