Canada Economy on Track to Grow 2.2% in Second Quarter

Pace is stronger than Bank of Canada’s estimate of 1.5%
Manufacturing drives growth in May while retail sales drag

The Westridge Marine Terminal at the end point of the Trans Mountain pipeline in Burnaby, British Columbia. The expanded line opened in May, helping boost the crude oil and other pipeline transportation industry.Photographer: James MacDonald/Bloomberg

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By Randy Thanthong-Knight

July 31, 2024 at 12:30 PM UTC

Updated on

July 31, 2024 at 2:21 PM UTC

This article is for subscribers only.

The Canadian economy likely expanded faster than forecasts in the second quarter, giving the central bank room to adjust the pace of rate cuts.

Gross domestic product is on track to grow at an annualized pace of 2.2%, according to Statistics Canada’s estimate Wednesday. That’s stronger than the Bank of Canada’s and economists’ forecasts of 1.5%, and is an acceleration from 1.7% between January and March.