Canada's Q2 GDP grows 3.3%, fastest since 2023 on strong exports and domestic demand
Macro
Statistics Canada reported on the 28th that the country's gross domestic product (GDP) for the second quarter of 2026 (April-June) grew at an annualized rate of 3.3% quarter-over-quarter, marking the fastest growth since 2023, driven by a significant increase in exports and robust domestic demand. The first quarter was revised upward to 0.3% growth, avoiding a "technical recession" defined by two consecutive quarters of negative growth. The Bank of Canada had estimated second-quarter growth at 2.5% as of July, but the actual figure exceeded that. In the second quarter, exports rose 3.6%, final domestic demand recovered to 1.0% growth, household consumption spending increased 0.8%, and business investment in equipment turned positive with a 2.3% gain. However, uncertainty has increased due to new tariff measures by the Trump administration.
