{"id":2181,"date":"2026-08-03T03:23:54","date_gmt":"2026-08-03T03:23:54","guid":{"rendered":"https:\/\/futureknowledge.in\/?p=2181"},"modified":"2026-08-03T03:23:54","modified_gmt":"2026-08-03T03:23:54","slug":"canadas-gdp-beats-expectations-as-second-quarter-rebound-gathers-steam","status":"publish","type":"post","link":"https:\/\/futureknowledge.in\/?p=2181","title":{"rendered":"Canada's GDP beats expectations as second quarter rebound gathers steam"},"content":{"rendered":"

\"Employees<\/p>\n

Canada\u2019s real gross domestic product<\/a> grew by 0.3 per cent in May and early estimates show the economy expanded again in June, as a second quarter rebound gained steam. <\/p>\n

May\u2019s gains were mainly driven by the mining, quarrying, and oil and gas extraction sectors, which grew by one per cent month over month, Statistics Canada said. Manufacturing and construction also showed strength in May. <\/p>\n

Statistics Canada\u2019s flash estimates suggest the economy grew by 0.2 per cent in June led by increases in wholesale and retail trade as well as finance and insurance. Including the June estimate, officials said the economy likely expanded by 0.8 per cent in the second quarter for an annualized growth rate of 3.4 per cent. <\/p>\n

Economists had largely expected the economy to improve in the second quarter of 2026, after it contracted by 0.1 per cent on an annualized basis in the first quarter. <\/p>\n

\u201cIf you combine May\u2019s data with advanced estimates for June, it would be the strongest performance seen in 13 quarters,\u201d said Matthieu Arseneau, deputy chief economist for the National Bank of Canada.
\u201cEconomic growth is also occurring when the population is contracting, so it\u2019s even more impressive.\u201d <\/p>\n

Ranella Billy-Ochieng, a senior economist for TD Bank Economics, said the broad-based economic growth was \u201creally encouraging,\u201d with 13 out of 20 industrial sectors contributing to growth in May. <\/p>\n

\u201cWe are seeing some of the shocks taking place in the Canadian economy actually fading,\u201d she said. <\/p>\n

However, Arseneau and Billy-Ochieng warned the Canadian economy is not out of the woods yet. <\/p>\n

Billy-Ochieng said monthly and quarterly GDP data can be very volatile, and that it\u2019s more important to focus on long-term trends. <\/p>\n

\u201cWhat we want to see going forward is sustained momentum and sustained broad-based participation in growth,\u201d Billy-Ochieng said. <\/p>\n

Arseneau noted that the economy is still experiencing excess supply following weakness over the past year, and uncertainty remains elevated amidst the threat of additional tariffs and Canada-U.S.-Mexico Agreement negotiations. <\/p>\n

He added that a lot of the boosts to the economy seen in May \u2014 the FIFA World Cup, severance payments to federal public service workers and government activities related to the census \u2014 were temporary, and higher energy prices caused by re-intensification of the war in Iran could lead to lower consumer spending. <\/p>\n

\u201cA moderation in economic activity is therefore to be expected in the coming months once these temporary factors subside,\u201d Arseneau said. <\/p>\n

\u201cThe political situation is the most important driver and we will continue to follow developments on these fronts.\u201d <\/p>\n