Statistics Canada reported on Thursday that the Canadian economy surged past second-quarter expectations with growth at an annual rate of 4.5 per cent, its best start since 2002.
The GDP number may be all the Bank of Canada needs for a second interest rate hike this fall, possibly next month but most likely in October.
READ MORE: BUSINESS REPORT: Higher interest rates ahead
Most of the strength came from consumer spending, up almost two per cent in the quarter, and the strongest gain in 10 years.
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A consensus of economists had predicted a second-straight quarterly growth reading of 3.7 per cent, according to Thomson Reuters, whereas the Bank of Canada had predicted second-quarter GDP to expand by three per cent in its latest forecast, released in July.
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It amounts to the strongest first half-year for Canada’s GDP in 15 years, and heralds well for businesses — particularly retailers — for the coming fall and holiday season.
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