Here’s what Canada’s surprise GDP rebound means for the BoC
Sherry Cooper, Chief Economist at Dominion Lending Centres Group, says higher US government borrowing, corporate debt issuance, and inflation concerns are putting upward pressure on long-term bond yields that could spill over into Canada.https://t.co/LtwETkjmhe
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 28, 2026
What drove the rebound
Exports rose at an annualized 15.1% in the second quarter, according to Statistics Canada, the strongest gain in more than three years, led by higher auto shipments and a jump in data-centre equipment imports.
Business investment in nonresidential structures, machinery, and equipment climbed 12.3% on a quarterly basis, snapping five consecutive quarters of decline.
Residential investment advanced 10.4%. Household consumption grew 3.3%, supported by spending on vehicles and rent. Corporate profits rose 9.6% from the previous quarter, the largest quarterly gain since early 2021, with the energy sector leading the charge.
Per capita GDP rose at an annualized 3.8% rate, its fastest pace since late 2021, as Canada’s population declined for a third straight quarter.
For the month of June alone, GDP grew 0.3%, Statistics Canada reported. A preliminary estimate for July, however, showed growth was flat, a signal that second-quarter momentum may already be fading.
