OTTAWA — Canada’s economy grew 0.8 per cent in the second quarter of 2026, driven by stronger exports, household spending and business investment.
Statistics Canada says the increase in real gross domestic product was equivalent to an annualized growth rate of 3.3 per cent.
The agency also revised first-quarter growth upward to 0.1 per cent from its initial estimate of no change.
On a per-capita basis, real GDP rose one per cent during the second quarter as Canada’s population declined for a third consecutive quarter.
Exports increased 3.6 per cent, their fastest pace in more than three years.
Exports of passenger cars and light trucks climbed 27 per cent as Canadian automobile production rebounded following declines in the previous two quarters.
Higher exports of intermediate metal products, energy products and industrial machinery also contributed to the increase. Imports rose 0.3 per cent.
Household spending grew 0.8 per cent, led by investment services, passenger vehicles and rent. Spending on gasoline and food declined, likely in response to higher prices.
Residential investment increased 2.5 per cent following two consecutive quarterly declines. Resale activity led the rebound, while new construction rose 0.8 per cent.
Business investment was supported by increased spending on engineering structures, machinery and equipment.
Investment in computers and peripheral equipment jumped 16.7 per cent, largely due to purchases of processing units used in data centres.
Employee compensation rose 1.5 per cent, with increases recorded in every province and territory.
Corporate income increased 9.6 per cent, marking its largest gain since the first quarter of 2021. The energy sector was the largest contributor.
Household disposable income rose 2.1 per cent, outpacing the 1.7-per-cent increase in nominal spending. The household saving rate reached 3.7 per cent.
The economy also maintained momentum into the end of the quarter.
Real GDP grew 0.3 per cent in June, its third consecutive monthly increase, with 13 of 20 industrial sectors expanding.
Services-producing industries grew 0.4 per cent, led by wholesale trade, retail trade and public administration.
Wholesale trade rose 1.7 per cent, while retail activity increased 1.4 per cent as seven of nine subsectors expanded.
Manufacturing grew 0.6 per cent for its third consecutive monthly increase. Construction also expanded for a third month, rising 0.3 per cent.
Goods-producing industries edged down 0.1 per cent in June as declines in mining, oil and gas extraction and utilities offset gains in manufacturing and construction.
Oil sands extraction fell 2.8 per cent as heavy rain slowed mining in northern Alberta and power outages disrupted some facilities.
Canada’s hosting of 10 FIFA World Cup matches also contributed to activity in broadcasting, spectator sports, urban transit and food services.
Statistics Canada’s preliminary estimate suggests real GDP was essentially unchanged in July as growth in real estate and professional services was offset by declines in retail trade and manufacturing.
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