Canadian Economy Soars in Q2, But Tariffs Threaten Momentum

Canada's economy experienced a strong second quarter, growing at a rate of 3.3% on an annualized basis, according to fresh data from Statistics Canada.

This marks the fastest quarterly pace of growth since early 2023 and surpasses the Bank of Canada's prediction of 2.5% growth in the quarter.

Exports led the charge, increasing by 3.6% in the second quarter, primarily driven by a rebound in passenger car and light truck shipments.

Economist Doug Porter stated that 'just to put it in perspective, we had almost no growth in the prior four quarters combined.'

However, experts warn that new tariffs and trade uncertainty may slow down the economy's momentum in the third quarter.

Ariane Curtis, senior North America economist at Capital Economics, noted that the re-escalating trade war will likely sour the growth outlook in the third quarter.