Statistics Canada data highlights elements of an economy still in flux
Canada's economy grew by an annualized rate of 3.3 per cent in Q2 of this year, according to a report released this morning by Statistics Canada. Exports, household spending, and business capital investment all drove GDP growth higher in the quarter, taking Canada out of the technical recession it hit with Q1's 0.1 per cent decline.
The report from StatCan also revised Q1's GDP contraction of 0.1 per cent to growth of 0.1 per cent.
Due to another consecutive quarter of population decline, Canadian per capita GDP increased by one per cent, quarter over quarter, in Q2.
Exports were one of the largest drivers of growth in the quarter, increasing 3.6 per cent, the largest increase since Q1 of 2023. Exports of passenger cars and light trucks grew by 27 per cent in Q2. Imports also only increased 0.3 per cent, after a 3.1 per cent rise in Q1.
Business capital investment also rose in Q2, StatCan noted that investment in engineering structures rose 2.3 per cent, after declining for two consecutive quarters. Investment in computes and computer peripherals rose 16.7 per cent, largely due to the import of chips required for the construction of data centers.
Household consumption also rose by 0.8 per cent, including higher spending on mutual funds and investment services. Per capita consumption was up one per cent. Employee compensation was also up 1.5 per cent in Q2, largely due to higher wages in finance, real estate, management, and trade.
