Canada GDP grows 3.3% annualized in Q2 2026

Canada’s economy grew at an annualized 3.3% in the second quarter of 2026, marking the fastest quarterly expansion since 2023. The gain was fueled by exports rising about 3.6% and increases in household spending and business investment, with machinery, equipment, and engineering projects contributing notably. A rebound in residential investment and energy-related earnings helped lift activity, while manufacturing benefited from lower tourism drag and a broader June upturn. Revised data show Q1 contraction was erased, clarifying that Canada was not in a technical recession. On a quarterly basis, GDP rose 0.8% in Q2 with June up 0.3%, and real GDP per capita increased as the population declined, signaling a broad-based recovery. Market reactions were muted, with attention on the trajectory of BoC policy and global factors such as oil prices and the U.S. economy.