Canada's Economy Expected to Bounce Back in Second Quarter

Canada's economy is set to show signs of rebounding from its mild contraction in the first quarter, according to expectations. Statistics Canada will release updated gross domestic product (GDP) figures for June and the second quarter overall.

Economists are predicting a significant increase in growth, with a Reuters poll showing an annualized rate of 3.4 per cent for the second quarter. RBC economists also believe GDP will top three per cent for the same period as the economy recovers from temporary drags on growth.

The contraction in the first quarter had sparked debates over whether Canada was already in a recession, but it now seems that the economy may have simply experienced a mild slowdown.