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- Canadian GDP growth accelerated to 0.7% in the second quarter, following a 0.4% gain in the first quarter
Canadian GDP growth accelerated to 0.7% in the second quarter, following a 0.4% gain in the first quarter
Real gross domestic product (GDP) growth accelerated to 0.7% in the second quarter, following a 0.4% gain in the first quarter. Meanwhile, final domestic demand rose 0.5%.
Growth was mainly driven by a 2.9% increase in export volumes-the largest gain since the second quarter of 2014. Exports of goods, led by energy products, rose 3.6% after increasing 0.3% in the first quarter. Exports of services edged down 0.2%, the first decline since the fourth quarter of 2015.
Household spending rose 0.6%, after increasing 0.3% in the first quarter. Outlays on services (+0.8%) was the largest contributor to the increase. Rebounds in semi-durable (+1.2%) and non-durable (+0.2%) goods and continued growth in durable goods (+0.5%) also contributed to the gain.
Businesses continued to accumulate inventories, adding $13.4 billion to their stock, following a $16.0 billion increase in the previous quarter. Both non-farm and farm inventories rose in the second quarter.
Business investment in non-residential structures (+0.5%), machinery and equipment (+0.3%) and intellectual property products (+0.2%) all decelerated in the second quarter. Housing investment grew 0.3%, following a 2.7% decline in the previous quarter.
Expressed at an annualized rate, real GDP was up 2.9% in the second quarter. In comparison, real GDP in the United States grew 4.2%
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