Canada’s economy grows 3.3% in Q2 as first-quarter GDP revised upward

GDP rose 0.3 per cent in June. Exports increased 3.6 per cent, mainly because of higher auto sales. Residential investment also grew as home resales increased in Ontario, B.C. and Quebec.

Business investment rose 2.3 per cent, while spending on computers and other equipment jumped. Household spending also increased by 0.8 per cent.

Statistics Canada also revised first-quarter growth to 0.3 per cent, meaning the economy did not enter a technical recession as earlier data had suggested.

Economists warn that growth could slow in the coming months because of ongoing trade tensions and tariffs with the United States.

The Bank of Canada is expected to keep its key interest rate at 2.25 per cent at its next decision on Sept. 2.

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