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Economy surprises with 3.7% growth

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OTTAWA—The economy blew past projections by expanding at an annualized pace of 3.7 percent in the second quarter, giving Canada its strongest three-month stretch of growth in two years.

Statistics Canada's latest reading for real gross domestic product shows an unexpectedly solid turnaround for an economy that was coming off its weakest back-to-back quarters of growth since 2015.

The agency says the economy rode a powerful, broad-based rebound in goods exports in the second quarter—led by robust growth in energy products, farming and fishing products, non-metallic minerals and aircraft products.

The report says the headline GDP number was also supported by a one percent drop in import volumes, compared with a 2.1 percent increase in the first quarter.

Experts had been predicting a more modest rebound for Canada following its weak first-quarter growth—which was revised up to 0.5 percent.

Economists had expected growth at an annualized rate of three percent for the second quarter, according to financial markets data firm Refinitiv.

Earlier this summer, the Bank of Canada had predicted second-quarter turnaround would be 2.3 percent.

On a month-to-month basis, the report says the economy expanded 0.2 percent for its fourth-straight month of growth.

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