Canada’s economic performance showed a significant recovery in the second quarter, driven by a notable increase in exports and enhanced domestic investment, as reported by Statistics Canada. The country’s GDP expanded at an annual rate of 3.3% during the second quarter, rebounding from a revised growth of 0.3% in the preceding quarter. Notably, in June alone, the GDP saw a 0.3% increase.
The positive growth in the second quarter indicates that Canada did not enter a technical recession, which is typically characterized by two consecutive quarters of economic contraction. The surge in exports, particularly in the auto sector, played a significant role in this growth, with a notable 3.6% increase reported by the data agency.
Additionally, the economy received a boost from residential investment and increased spending by business owners on machinery and equipment. Business capital investment saw a notable uptick of 2.3% in the second quarter, breaking a streak of five consecutive quarters of decline.