Canada's Economy Slows to 3.3% Growth in Q2

Canada's economy expanded at an annualized rate of 3.3% in Q2 2025, falling just shy of market forecasts of 3.4%, according to Statistics Canada data.

The growth was driven by broad-based gains in services-producing industries, particularly in the finance and insurance sector, as well as continued strength in business investment.

However, consumer spending grew at a more moderate pace than in Q1, reflecting persistent cost-of-living pressures and elevated interest rates.

The Bank of Canada's policy trajectory is unlikely to be altered by the slight miss against forecasts, with financial markets still pricing in a high probability of an interest rate cut at the next policy meeting in September.