Canada's Economy Posts Strong 3.3% Growth in Q2 Amid Tariff Uncertainty

Canada's economy grew at a healthy clip in the second quarter, fueled by strong exports and residential investment. According to Statistics Canada, real gross domestic product (GDP) rose 3.3% annualized in Q2, outpacing economists' expectations and topping the Bank of Canada's call for 2.5% growth.

The rebound in shipments of passenger cars and light trucks drove a 3.6% increase in exports, while residential investment was boosted by a hot resale housing market in Ontario, Quebec, and British Columbia.

Business capital investment also saw a gain, snapping a five-quarter streak of decline, with spending on machinery and equipment reaching its highest level in two years.