Canada’s economy expanded at a slower-than-expected pace in Q2, with inflation pressures easing slightly from the prior quarter.
Canada’s gross domestic product rose at a 3.3% annualized rate in the second quarter, falling short of the 3.4% estimate. The print marks a sharp rebound from the 0.3% growth in Q1 but signals a modest slowdown in momentum.
The implicit price index, a measure of inflation, climbed 2.5% quarter-over-quarter, down from 1.2% in the previous period. June’s monthly GDP rose 0.3%, matching the prior month but exceeding the 0.2% estimate. A preliminary estimate for July shows flat growth.
The data suggests cooling economic activity, potentially influencing the Bank of Canada’s policy outlook amid persistent inflation concerns.