2026.08.2812:38:21UTC+00Canada’s Economy Accelerates in Q2 2026

Canada’s economy grew by 0.8% in the second quarter of 2026, following an upwardly revised 0.1% increase in the previous quarter. The expansion was driven by stronger exports, household consumption, and business capital investment.

Exports rose 3.6%, the largest quarterly gain since Q1 2023, led by a 27.0% surge in passenger cars and light trucks as Canadian auto production rebounded. Increased exports of metals, energy products, and industrial machinery and equipment also contributed significantly to growth.

Household spending advanced 0.8%, supported by higher outlays on investment services, passenger vehicles, and rent. Business investment also strengthened: spending on engineering structures increased 2.3%, while investment in machinery and equipment climbed to its highest level since Q2 2024. Within that category, investment in computers and peripherals jumped 16.7%, largely reflecting higher imports of processing units used in data centres.

On an annualized basis, real GDP grew at a 3.3% pace, the fastest since Q3 2024 and broadly in line with market expectations of 3.4%.