Economy beats expectations with 4.5% growth

Household spending, exports drive economy past expectations

Canada’s economy performed far better than expected in the second quarter, with growth at an annual rate of 4.5 per cent.

A consensus of economists had predicted the quarter would be 3.7 per cent, on par with the first quarter.

The two strong quarters give Canada its best economic start to a calendar year since 2002.

Statistics Canada says the increase in real gross domestic product in the second quarter was driven by household spending and exports, particularly in the form of energy products.

Exports expanded 2.3 per cent from April to June, up from 0.4 per cent in the first three months of the year.

The numbers also show households spent 1.9 per cent more on goods in the second quarter — the strongest gain since 2007.

The increase came even though housing investments contracted 1.2 per cent during a quarter that saw the introduction of a new tax on foreign buyers in Ontario. In comparison, residential real estate expanded 2.9 per cent in the first quarter.

The quarterly acceleration was also fuelled by an eighth-consecutive monthly increase in June that included a two per cent expansion in the construction sector — its largest gain in four years.

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Town of Blackfalds moving forward with the arena and library expansion

Council voted 4 to 3 to approve the final and guaranteed maximum price of the $24.6 million

Cilantro and Chive ‘Chicken Parmesan Burger’ supports Lacombe Food Bank

Cilantro and Chive owner Rieley Kay was thrilled to hand over a cheque

2020 Lacombe property tax notices being mailed out

Property taxes are due and payable without penalty if recieved at City Hall by Dec. 31, 2020.

Lacombe salon alters cleaning procedures to protect clients, staff

Hairapy owner pleased to be able to ‘do what they do best’ again

Facing changes together: Your community, your journalists

The Lacombe Express covers the stories that matter to you and to our community

Kelowna, B.C., man charged with murder in Alberta killing

A second man is also wanted in connection with the first degree murder of Cody Michaloski

PHOTOS: Loved ones reunite at an oasis on closed U.S.-Canada border

Officials closed the park in mid-March over coronavirus concerns

Trump preparing order targeting social media protections

“This will be a Big Day for Social Media and FAIRNESS!”

USMCA poised for star turn in trade spotlight as White House sours on China

Pandemic accelerates U.S. efforts to pull back from China

Legal experts weigh in on Meng Wanzhou decision from B.C. Supreme Court

The court will now hear arguments about whether Meng’s arrest was unlawful

If an MP heckles in a virtual House of Commons, does it make a sound?

If an MP heckles in a virtual House of Commons, does it make a sound?

How much will be enough when it comes to Canada’s COVID-19 supply?

How much will be enough when it comes to Canada’s COVID-19 supply?

Most Read