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Canada’s Economy Posts 3.3% Growth While Signaling Waning Momentum

  • Monthly reading shows contraction in July after hot first half
  • Bank of Canada hiking rates aggressively to tame inflation
A container ship docked at a terminal in Tsawwassen, British Columbia on July 13.

A container ship docked at a terminal in Tsawwassen, British Columbia on July 13.

Photographer: James MacDonald/Bloomberg
Updated on

The Canadian economy accelerated in the second quarter as the nation benefited from surging commodity prices and got a boost from the lifting of Covid lockdowns, though signs are emerging the momentum is waning.

Gross domestic product rose at a 3.3% annualized rate after a 3.1% increase in the first three months of the year, Statistics Canada reported Wednesday. Growth was led by stronger household consumption and business spending on inventories. Economists surveyed by Bloomberg expected 4.4% annualized growth in the second quarter.