OTTAWA, Ont. — The Canadian economy posted a strong second quarter, with real gross domestic product up 0.8%.
Businesses continued adding to inventories and consumer spending and investments were also up, Statistics Canada announced this morning. Surprisingly, exports were also up despite a strong Canadian dollar compared to the US greenback. Exports in the second quarter surpassed first quarter gains.
Overall, the Canadian economy grew at a 3.4% annualized rate in the second quarter, which is down slightly compared to Q1. It mirrored growth of the US economy (4%), which also gained momentum in the second quarter.
The strongest growth came in the latter two-thirds of the second quarter, StatsCan reported. Part of the success lies in a rebound in oil and gas exploration and natural gas extraction.
Goods and services exports were stalled in the first quarter, but rebounded in Q2 increasing 0.7%. Energy products surged 3.3% while manufactured goods registered mixed results as automotive products fell 2.7%, offset by a 1.2% increase in industrial goods and materials.
Imports rose 1.6% following a small decline in the first quarter. Business demand for machinery and equipment was also up in the second quarter, according to Statistics Canada, accounting for one third of the overall increase in imports. Automotive imports dropped 1.4% but consumer goods received a substantial increase.
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