Canada’s economy grew in the three months ending in June, with annualized gross domestic product (GDP) up 3.3 per cent, according to Statistics Canada.
That data also showed officials have revised GDP figures for the first quarter, which had sparked debate over whether Canada had entered a technical recession.
“Canada’s economic growth has shown signs of resilience in the face of immense pressure, which is a relief and perhaps a reason for optimism,” said economist Anupriya Gangopadhyay of the Businesses Data Lab and Canadian Chamber of Commerce in a statement.
“Strong second-quarter GDP growth, alongside an upward revision to Q1, has put recession concerns firmly to rest for now.”
The agency released real GDP figures for June on Friday, which showed the economy expanded 0.3 per cent from May and the second quarter expanded 0.8 per cent from the first quarter.
Real GDP in the first quarter was also revised slightly higher from zero per cent to 0.1 per cent, and on an annualized basis, the first quarter was positive by 0.3 per cent, up from a drop of 0.1 per cent.
Back in May, StatCan reported a marginal annualized decline in first-quarter GDP – a second consecutive quarterly drop that fueled some debate over whether Canada was in a recession. But that quarterly contraction was erased as part of the agency’s regular revisions on Friday.
Those first quarter revisions, Statistics Canada says, was led by higher amounts of non-metallic minerals and energy product exports.
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Latest GDP numbers show “technical recession” in Canada
In the second quarter, exports were one of the main contributors to the higher GDP results, with a 3.6 per cent increase — the largest since the first quarter of 2023.
Statistics Canada says the sharpest increase in exports during the second quarter was for passenger cars and light trucks, up 27 per cent, and as auto production in Canada rebounded following declines in the previous six month stretch.
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Residential investment was also highlighted by Statistics Canada, rising 2.5 per cent as the real estate market warmed up, and following two consecutive quarterly declines. This included a rise in ownership transfer costs in Ontario, B.C. and Quebec, which the agency says represents resale activity.
Business investment also bounced back in the second quarter by 2.3 per cent after the previous two quarters recorded declines. Statistics Canada says most of the increase in business investment was seen with higher spending on machinery and equipment, as well as investment in computers and computer peripherals like processing units used in data centres.
Household spending was also up by 0.8 per cent in the second quarter, with consumers investing more in products like mutual funds, as well as buying more passenger vehicles and paying higher rent costs. However, some of that household spending was offset by a drop in gasoline and food purchases in the second quarter, which Statistics Canada says was likely in response to higher prices.
The agency says household spending on a per capita basis was up one per cent compared to the first quarter.
Statistics Canada also released an early estimate for July’s GDP result on Friday, which points to zero per cent growth from June, and as new tariff threats from the U.S. put some Canadian businesses on high alert.
“The rebound in business investment saw machinery and equipment spending rise to its highest since Q2 2024, although the recent escalation of trade tensions with the U.S. likely puts this improvement at risk,” said Andrew Grantham, senior economist at CIBC in a statement.
“The advance estimate for July pointed to a stall in activity (0.0 per cent), suggesting that growth was already losing momentum even before new tariff threats were made towards the end of that month before coming into effect in August.”
What the GDP report means for interest rates
Friday’s GDP report marks the final key economic gauge the Bank of Canada will use to determine if it should update its benchmark interest rate, which is scheduled for Sept. 2.
The Bank of Canada aims to strike a delicate balance that ensures the economy is able to expand at a sustainable pace, while also keeping prices relatively stable for consumers and businesses.
The central bank’s governing members meet regularly to determine if its key lending rate should be adjusted or left unchanged based mainly on economic indicators, including reports on GDP, the labour market and inflation.
“Businesses continue to invest as they look for opportunities to diversify into new markets, while household spending remains strong even on a per-capita basis. Combined with recent gains in employment, trade and consumer sentiment, the data could strengthen the case for a rate hike,” said Gangopadhyay.
“However, renewed CUSMA uncertainty and geopolitical risks threaten that momentum. For now, my bet remains on a hold at the next Bank of Canada meeting.”
The benchmark interest rate has held steady at 2.25 per cent since the Bank of Canada dropped it from 2.5 per cent in October 2025.
Governor Tiff Macklem has indicated after recent meetings that key economic indicators are mostly hovering around where they should be, but outside factors like trade tensions with the U.S. and higher oil prices stemming from the Iran war pose risks that could shake up that delicate economic balance.
“Given the recent escalation of trade tensions with the U.S., and with monthly data suggesting that the economy was already slowing even before new tariffs hit, today’s release will be viewed as old news and doesn’t change our forecast for the Bank of Canada to remain on hold,” said Grantham.
– With a file from The Canadian Press
Ah no …thats an annualized rate based on a one quarter performance. The actual rate was +.08%. Canada GDP is down for the first 6 months of the year. The Bank of Canada projects a 1.1% increase for 2026. That’s less than half the 2.3% projected rate of inflation.
Lol, annualized, it only went up 0.08% in Q2.
I haven’t read and won’t read this liberal propaganda. I’m still poor and it’s the liberals fault. I only know what I’m told and it’s that con-arny is ruining everything. Good luck libs
You know what else got a bump? Our property tax, insurance and food prices. Wages haven’t moved.
Chatbots are merely an interactive, unverified Wikipedia.
“Canada since Mark Carney became prime minister in 2025, has outperformed everyone in America and also the Eurozone and anywhere in the world.” – Matt Winkler in early August.
@ Incontinentia Buckets – The source that I used has real data that is current to 2026. Your AI answer stops in 2022. If you know what you are talking about you can use the real data and don’t need a chatbot to pretend that you know more than you do.
@FTW
Sorry, I misread the comments. Thought you were arguing with me, now I see different. My bad.
@Anonymous and @FTW
Look it up, its not hard to find. Just ask Google or AI how our country fairs against others. It’s probably the height of your intellect, but I’m sure you can manage it. You won’t though because you are being disingenuous.
But hey, I did GDP and GDP per Capita for you.
“While Canada’s total nominal GDP ranks 11th globally (2026), its per-capita performance has deteriorated relative to peers, with real GDP per capita growth ranking third-lowest among 30 OECD advanced economies from 2014 to 2022”
And because it might be complicated for you, third-lowest among 30 countries = 28th.
@ Matthew – There is no mystery in this. A couple of the 5 major Canadian banks have already worked the current situation into their forecasts. They both expect it will decrease GDP growth by ~0.5% annually. (One of the banks was RBC and I forget the other)
The investment program that Carney is starting will most certainly provide some of the expected growth. The Major Projects Office, Canada Strong Fund and the Canada Investment Summit are all parts of it.
This announcement today shows that the economy is much larger than just those things and in Q2 it was humming along.
The more trade that we can divert away from the US the less the obese toddler in charge down can disrupt with his mercurial temperament.
Something tells me Liberal tariffs and the “trade war” will increase our GDP considerably while screwing hundreds of millions to billions of people…because maths…and an understanding of economic terms.
Not much anti-Carney trolling in here today. The pips have to recalibrate their squeaks now that this GDP news is out.
So they’re cooking the books. Too bad the inflation rate is still higher than that.
@ FTW – So far in 2026 the difference between Canada’s GDP growth and inflation rate is 3rd lowest in the G7 and that takes into account the flat GDP growth in Q1 that all Carney’s belly achers go on and on about. Now that the redirection in Q1 is done I expect this to get even better. Expecting Canad to operate in isolation from the global economy is ridiculous. (Data is from StatisticsoftheWorld.com.)
This most definitely is good news no matter what posters from who knows where try to stir up.
“Ben
August 28, 2026 at 1:46 pm
@Anonymous. You claim Global is biased. Maybe head on over to the post or rebel news?”
@Ben, everyone has bias. If you claim otherwise, you are the liar. Good people, try to distance themselves from their own bias when speaking with others.
My point is, if inflation is 3.1% and GDP is 3.3%, neither of you know what that means.
You both seem to think it is good news when it isn’t.
@ FTW – Thanks for making my point: Incontinentia Buckets has got nothing. You bring even less to the discussion.
@ Not so great – Canada’s inflation rate so far in 2026 is 3rd lowest in the G7 @ 2.5%. (US and UK tied for 6th @ 3.2%)
You got nothing…what’s the difference?
“Anonymous
August 28, 2026 at 3:33 pm
@ Incontinetia Buckets – What a load of gibberish. You talk in circles to discredit news without any sources.
Do you have any proof? Show your work.”
It almost matches our rate of inflation for the same period.
@ Incontinetia Buckets – What a load of gibberish. You talk in circles to discredit news without any sources.
Do you have any proof? Show your work.
@OM
Trigger warning: DEI = Didn’t Earn It!
@Anonymous
Yes, our GDP is rising. But only because of insane immigration which is having negative effects in all sorts of areas. Our GDP per Capita is dropping like a stone.
If this report were unbiased, it would include historical data to compare to. Our Real GDP Growth is basically zero, and it is not hard to improve 3% of almost nothing. Look at a graph of any economic indicator, and you will see Canada is struggling. Rank our performance against other G20 countries, and you will see the same.
Yes, growth is good, but 3% of 1% isn’t a lot. Global is fluffing the data. They aren’t biased, they are propaganda.
@ Ben – Damning with faint praise. Less biased is still biased. Canada’s taxpayer-owned news source is also biased but differently. I am biased, you are biased. It’s arrogant to believe otherwise.
@Anonymous. You claim Global is biased. Maybe head on over to the post or rebel news?
@ Les – Nonsense. StatsCan’s methodologies do not change when the party in charge changes.
Haven’t been able to believe anything from Stats Can for past 11 years.
Global’s corporate bias is showing in this. They cherry pick for measured quotes in what is great economic news.
Gangopadhyay from the Chamber of Commerce says it’s “perhaps a reason for optimism” and his “bet remains a hold” for the Bank of Canada Rate.
Grantham from the CIBC says “the Bank of Canada to remain on hold.”
With the obese dotard raging, raising rates now would be foolish but imagine how this story would be told if there was a Conservative PM. Carney is better at doing what Conservatives want done than they are.
@ Dave – This is the only source for this data. Businesses do not report to any other source. The banks and the chamber of commerce use this.
@ Sean Young – The technical recession talking point disappears so you try to create an imaginary 5 year recession out of thin air. After Covid in 2020, Canada’s GDP in 2021 was higher than in 2019 and has increased every year since.
Nobody can hurt Canada…not even fat trump….
Que the magatards saying they don’t believe the news anymore…..but we’re all too happy to believe the news when it reported a recession months ago, lol! Pathetic losers!
It’s hard to believe anything int his country especially any of the legacy media . But in sure I’ll see a few elbozo sheep in this comment section with their pom poms on gushing over mark Carney and the Lib government
I will wait for a credible source before making a decision
Canada’s exports to the United States rose i due to higher shipments of crude oil, passenger cars, and light trucks, alongside a softer Canadian dollar that made goods more competitive.
Higher exports of crude oil drove consecutive monthly gains
Increased shipments of passenger cars and light trucks boosted overall merchandise export totals.
A softer Canadian dollar helped increase total export volumes and widen the trade surplus.
Name one thing Carney did that influenced this?
@Les, the term “DEI-hire” is such a ridiculous thought-terminating cliche. Not only do you clearly not understand what DEI even is, you are also just using it as a stand in for the undoubtedly sexist and racist things you want to say, and the fact that people like you exist is exactly why DEI is still important. Some losers think that anyone who is not a cis white man is automatically less competent, and DEI exists to stop that kind of loser hiring his incompetent buddies over women or minorities.
Yes and I have the Gordie Howe bridge to sell to anyone who believes the government numbers. Should be a quick sale because those folks are very smart.
Don’t believe a word of it. I don’t trust anything anyone connected with this government says. I believe what I see prices going up people losing their jobs. Here in BC a mill will be closing Oct 19th and 400 people are losing their jobs. Wildfires have hurt businesses and tourism people have lost homes and this news is supposed to make feel good.
@Les. So I guess you don’t believe the DEI hires at private entities who forecasted this? It really begs the question of who do you believe then?
Government spending counts as GDP lol.
We can’t trust the DEI hires at Stats-Can. Everything they report is LPC agenda related, not facts.
@Sean Young. By an objective measure, the World Press Freedom index, we score high and much higher than the US. So your point, respectfully, lacks credibility.
Even I have to admit that Carney’s doing a pretty decent job with the economy, what with an actively hostile regime with colonial ambitions to the south of us that keeps trying to interfere with our economy. But it would be nice if more of this growth were focused on helping the working class, instead of “investments” that will only keep widening the economic divide and our impending ecological collapse.
If Canada has to label all products why is are media exempt. After all the Chinese supported Liberals take from taxpayers to fund the Liberal only allowed legacy mainstream propaganda media in this formerly democratic country.
Liberals did close government for a year continues to pay media over 5 billion annually. So the campaign cost to Canadian citizens is over 20 billion before election even start.
Mass immigration and government growth are not sustainable, they help hide the 5 years of recession.
Great news!