Tariffs Cloud Canada's Economic Recovery

Canada's economy rebounded in the second quarter with a 3.3% annualized GDP growth, its fastest quarterly expansion since 2023.

This surpassed the Bank of Canada's forecast of 2.5%, but economists are skeptical about how much momentum this will carry into the rest of the year due to trade tensions.

Economists point out that growth has already started to slow down, with GDP remaining unchanged in July and early tracking for the third quarter closer to the Bank's forecast of 1.5%.