Canada's Economy Roars Back with 3.3% Growth in Q2 2026

Canada's economy experienced its fastest growth in three years, expanding by 3.3 per cent on an annualized basis in the second quarter of 2026.

This growth was mainly driven by higher exports, business capital investment, and household spending.

According to Randall Bartlett, deputy chief economist with Desjardins Group, 'This corroborated our view and pretty much every other economist that Canada was not in a recession in the first quarter of 2026.'

Economists were expecting this strong showing after a string of data released showed signs the economy was rebounding from a slow start to the year.

Bartlett noted that the recent escalation of trade tensions between Canada and the U.S. has added uncertainty into the economy, with the possibility of job losses by the end of the year if the trade war escalates.