Canadian Economy Surges 3.3% in Second Quarter

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

The strong jump in exports and solid domestic demand are aiding the rebound. Healthy 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 US tariffs that upended North American supply chains and increased costs.

Statistics Canada also reported that previously a slight contraction in the first quarter has been revised to an expansion. This means Canada was not in a technical recession, which is usually two consecutive quarters of contraction.