Canada's Economy Shows Signs of Rebound in Second Quarter
The Canadian economy grew by 0.3% in May, according to Statistics Canada's latest gross domestic product figures. This growth is a sign of an economic rebound in the second quarter and should put to rest any talk of Canada being in a recession.
Andrew Grantham, senior economist at CIBC, said that growth was fairly broad-based in May, with industries such as oil and gas extraction and housing showing signs of improvement. The resurgent housing market was particularly strong, with offices of real estate agents and brokers seeing activity increase by 5.1% in May.
Other economists, including Marc Ercolao of TD Bank and Doug Porter of BMO, also expressed optimism about the economy's prospects, citing the resilience of growth despite temporary drags such as harsh winter weather and early maintenance activity in oil and gas extraction.
The Bank of Canada is scheduled to make its next interest rate decision on September 2, and economists expect that the central bank will hold steady at a benchmark interest rate of 2.25%.