Canada's economy grew by 3.3% annualized in the second quarter, showing sharp recovery
Canada's economy experienced a 3.3% annualized growth in the second quarter, exceeding expectations and signaling a recovery. Growth was driven by increased exports, business investment in technology, and consumer spending.
Why it matters
This data suggests a stronger-than-anticipated economic performance, which influences national monetary policy and investor confidence.
The economy grew at an annualized rate of 3.3 per cent in the second quarter. For the month of June, GDP was up 0.3 per cent.
The second-quarter growth only one percentage point lower than what economists had expected, but well above the Bank of Canada's prediction of 2.5 per cent.
Exports rose 3.6 per cent, according to the data agency, largely because of higher auto exports.
Residential investment also helped boost the economy, especially as home resale activity jumped up in Ontario, B.C. and Quebec in particular.
Business investment also grew as owners spent more on machinery and equipment in the second quarter. Business capital investment was up 2.3 per cent, Statistics Canada said.
Investments in computers and peripherals jumped 16.7 per cent, which the agency said was related to the kinds of processing units used in data centres.
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