Canada's economy grew by 3.3% in the second quarter, showing sharp recovery

Canada's economy grew by 3.3% annualized in the second quarter, showing sharp recovery

First-quarter growth was also revised up

Canada's economy rebounded sharply in the second quarter, thanks to a jump in exports and stronger domestic investment, according to Statistics Canada data.

The economy grew at an annualized rate of 3.3 per cent in the second quarter. For the month of June, GDP was up 0.3 per cent.

Exports rose 3.6 per cent according to the data agency, largely because of higher auto exports.

Residential investment also helped boost the economy, as did investment by business owners, who spent more on machinery and equipment in the second quarter. Business capital investment was up 2.3 per cent in the second quarter, snapping a streak of five consecutive quarters of decline.

Investments in computers and peripherals jumped 16.7 per cent in the second quarter, which StatCan said was related to the kinds of processing units used in data centres.

And, corporate incomes rose in the second quarter largely thanks to the energy sector. The high cost of gas also acted as a drag on earnings for manufacturing firms, which saw their input costs rise.

Earlier this year, Statistics Canada data indicated the Canadian economy shrank marginally in the first quarter, raising debate about whether the country was in a technical recession.

But in today's release, the data agency revised the first-quarter results, showing that GDP in the first quarter was actually slightly positive at 0.3 per cent annualized.

With files from Reuters and The Canadian Press