Canada's Economy Rebounds with 3.3% Growth in Q2

Canada's economy saw a sharp recovery in the second quarter of this year, growing at an annualized rate of 3.3%.

This is the fastest rate of growth since 2023 and marks a significant improvement from the revised 0.3% increase in the first quarter.

Statistics Canada reported that the upward revision means Canada was not technically in a recession, which is usually defined as two consecutive quarters of contraction.

The recovery was driven by strong domestic demand, led by consumer spending and business investments.

Household final consumption expenditure rose 0.8%, its highest level in three quarters, while business investment grew 2.3% in the second quarter after a contraction in the previous period.

However, a new round of U.S. tariffs imposed on $20 billion of Canadian exports brings new uncertainty to the economy.