Canadian Economy Rebounds 0.8% in Q2 2024 on Services and Government Spending

Canada's economy rebounded in Q2 2024 with a 0.8% quarterly growth, exceeding market expectations of 0.7%, according to Statistics Canada data released on August 30, 2024.

The expansion was driven by increases in services-producing industries and government spending, which rose 1.6%, the largest quarterly increase since 2021, bolstered by higher public sector compensation.

However, per-capita output continued to decline, falling 0.2% in Q2, marking the fifth consecutive quarterly decrease, suggesting that the growth is not translating into improved living standards for Canadians.