Canada's Economy Shows Signs of Strong Rebound in Q2

Economists say Canada's economy is rebounding in Q2 after early signs indicate growth of 0.3% in May, exceeding initial expectations of 0.1%. The real GDP increase was broad-based across both goods and services sectors.

Andrew Grantham, senior economist at CIBC, believes the rebound is even stronger than anticipated, dispelling recession concerns. Growth in oil and gas extraction and a resurgent housing market contributed to May's growth.

The Bank of Canada's forecast for a 2.5% increase in Q2 appears to be on track, although some economists expect growth to moderate in the second half of the year due to high fuel costs and trade uncertainty.