Canada's Economy Surges in Q2 with Strong Domestic Demand

Canada's economy rebounded sharply in the second quarter after six months of virtually no growth. The country's GDP grew at an annualized rate of 3.3%, following an upwardly revised 0.3% in the first quarter, according to Statistics Canada.

The strong domestic demand, led by consumer spending and business investments, signals that the economy is slowly brushing off the impacts of more than 18 months of U.S. tariffs that upended North American supply chains and increased costs.

A new 50% U.S. tariff imposed this week on Canadian goods was met with counter-measures from Canada, but the country's solid domestic consumption and expenditure pattern puts it on a firm footing to withstand this challenge.