Canada's Economy Sees Sharp Recovery in Second Quarter

Canada's economy rebounded sharply in the second quarter, growing at an annualized rate of 3.3% after six months of virtually no growth. The strong jump in exports and solid domestic demand drove this recovery.

The first-quarter growth was also revised up to 0.3%, which means Canada was not in a technical recession. A recession is typically defined as two consecutive quarters of contraction.

The data agency attributed the increase in exports to higher auto exports, with a rise of 3.6% in the second quarter. Additionally, residential investment and business capital investment also contributed to the economic growth. Business capital investment was up 2.3% in the second quarter, snapping a streak of five consecutive quarters of decline.