Canada's Economy Rebounds Sharply in Q2, Defying Tariff Headwinds

Canada's economy bounced back strongly in the second quarter after six months of virtually no growth. The country's GDP grew at an annualised rate of 3.3% during this period, following a revised 0.3% increase in the first quarter.

This upward revision means Canada was not technically in recession, which is usually defined as two consecutive quarters of contraction.

A strong domestic demand, led by consumer spending and business investments, has helped the economy recover from the impacts of more than 18 months of US import tariffs that disrupted North American supply chains and increased costs.

The Canadian government's decision to impose counter-measures on Canadian imports from the US may have also contributed to the country's resilience in the face of a new 50% US import tariff imposed this week.