Canadian Economy Surges in Q2, Outpacing Bank of Canada Forecast

Canada’s economy grew at an annualized rate of 2.1% in the second quarter, exceeding the Bank of Canada’s predictions. The growth was fueled by increased government spending, business investment in infrastructure and equipment, and household spending on services. However, the economy also experienced declines in exports, residential construction, and household spending on goods. Despite the overall growth, the economy shrank on a per-person basis for the fifth consecutive quarter. A preliminary estimate suggests the economy remained flat in July, providing further insight into the economic landscape ahead of the Bank of Canada’s interest rate decision on Wednesday.