Canada's Economy Rebounds with 3.3% Growth in Second Quarter

Canada's economy bounced back in the second quarter after six months of stagnant growth. The country's GDP grew at an annualized rate of 3.3%, exceeding expectations and beating a revised 0.3% increase in the first quarter.

The upward revision to first-quarter growth means Canada was not technically in recession, which is usually defined as two consecutive quarters of contraction. Healthy domestic demand, driven by consumer spending and business investments, helped cushion the impact of over 18 months of U.S. import tariffs that disrupted North American supply chains and increased costs.

The Canadian dollar slightly weakened after the GDP data, trading down 0.01% to C$1.3856 against the U.S. dollar or 72.17 U.S. cents. Money markets expected no change in interest rates next week.