Indicators
Canada’s Economy Grows But Weak Details Keep September Rate Cut Likely
- Government spending, investment ex-inventories drive growth
- Household consumption softens as Canadians feel rates pinch
A Canadian flag in front of the Bank of Canada.
Photographer: Kamara Morozuk/BloombergThis article is for subscribers only.
Canada’s economy grew more than expected in the second quarter, but falling per-capita gross domestic product and softening household consumption should keep the Bank of Canada on track to cut rates for a third straight meeting next week.
The country’s GDP rose 2.1% on an annualized basis from April through June, beating the median estimate of 1.8% in a Bloomberg survey of economists and the central bank’s forecast of 1.5%. That’s up from 1.8% in the first quarter and represents the fastest growth since the first quarter of 2023.