Canada’s economy picked up speed in the second quarter of 2026, with real GDP rising 0.8 per cent, equivalent to an annualized rate of 3.3 per cent, as exports, household spending and business investment strengthened, says Statistics Canada.
On a per-person basis, GDP increased 1.0 per cent, helped by Canada’s population declining for a third consecutive quarter.
The first-quarter GDP estimate was also revised slightly higher, from no growth to 0.1 per cent, giving you a picture of an economy that entered spring on firmer footing than initially reported.
Highlights of Second Quarter GDP Report:
- Exports provided the biggest push: Canadian exports climbed 3.6 per cent, which Statistics Canada described as the “largest increase since the first quarter of 2023.” Passenger car and light-truck exports jumped 27.0 per cent as domestic auto production rebounded. Energy products, metal products and industrial machinery also contributed. Imports rose just 0.3 per cent, following a much stronger 3.1 per cent increase in the previous quarter.
- Housing and business investment rebounded: Residential investment increased 2.5 per cent after two quarterly declines, with resale-related activity rising most in Ontario, Quebec and British Columbia. New construction increased 0.8 per cent, led by apartment work in B.C. Businesses also spent more, including a 16.7 per cent jump in investment in computers and peripherals, partly tied to processing units used in data centres.
- Households spent more, but also saved more: Household spending rose 0.8 per cent, led by investment services, passenger vehicles and rent. Canadians bought less gasoline and food, which the release says was likely a response to higher prices. Disposable income grew 2.1 per cent, faster than nominal spending at 1.7 per cent, pushing the household saving rate to 3.7 per cent.
- Higher energy prices boosted corporate income: Corporate incomes surged 9.6 per cent, the strongest increase since early 2021, with the energy sector leading the gain. The GDP deflator rose 2.5 per cent, its largest increase in four years, as export prices climbed 6.5 per cent. Employee compensation also increased 1.5 per cent, with gains recorded across every province and territory.
- Employee compensation also moved higher: Compensation of employees rose 1.5 per cent in the second quarter, with the strongest wage gains coming from finance, real estate, company management and trade. Transportation and storage, along with information and cultural industries, saw declines. Every province and territory recorded growth, ranging from 2.5 per cent in New Brunswick to 0.5 per cent in Newfoundland and Labrador.