Canada’s economy picked up speed in the second quarter of 2026, delivering its strongest pace of growth in more than three years and helping ease concerns that the country was headed into a prolonged downturn.
New figures from Statistics Canada show real gross domestic product grew at an annualized rate of 3.3 per cent in the second quarter. The agency also reported GDP increased 0.3 per cent in June.
The stronger-than-expected performance was driven in part by a rebound in exports and increased business spending on capital investments.
Exports and investment lead growth
Statistics Canada says exports surged in the second quarter, helped by a recovery in auto production after a slowdown that had weighed on the sector for the previous six months.
Businesses also stepped up investment.
Capital investment rose 2.3 per cent during the quarter, ending a streak of five consecutive quarters of decline.
The gains in both exports and business spending provided a significant boost to overall economic activity during the spring.
Revised first-quarter figures change economic picture
The latest report also revises how the economy performed earlier in the year.
Statistics Canada reported in May that the economy had contracted slightly in the first quarter of 2026, prompting debate over whether Canada was slipping into a recession.
As part of its regular revisions process, however, the agency now says the economy actually posted modest growth in the first quarter.
The updated figures effectively put to rest speculation that Canada was entering a prolonged economic downturn, while highlighting a much stronger first half of 2026 than previously understood.
- with files from The Canadian Press
