Canada's economy posts fastest growth in three years

Canada’s economy grew by 3.3 per cent on an annualized basis in the second quarter of 2026, marking the fastest quarterly expansion since 2023.

Economists were expecting the strong showing after a string of data released showed signs the economy was rebounding from a slow start to the year.

Statistics Canada also released revised data for the first quarter of 2026, showing the economy actually grew by 0.3 per cent. Previously, the agency reported annualized real gross domestic product had contracted by 0.1 per cent in that quarter, which had marked two consecutive quarters of negative GDP growth, meeting the technical definition of a recession.

Early signs suggest momentum from the second quarter rebound had slowed. Statistics Canada’s flash estimates for July indicate real GDP was unchanged for the first time in four months, following 0.3 per cent month-to month growth in June.