Canadian economy likely to have expanded 4 pct in Q2, likely to hold above 2 pct in H2

Canada’s economic growth surprised on the upside In May, the real GDP had grown 4.6 percent year-on-year, the strongest in 16 years, which was impressive even if helped by last year’s wildfire-related slump. Following a 3.7 percent annualized rise in the first quarter, the real GDP growth is expected to have accelerated 4 percent in the second quarter, or about three times faster than anticipated, noted BMO Capital Economics in a research report. The best 12-month job growth in nine years has carved the unemployment rate to nine-year lows of 6.3 percent, boosting consumer sentiment to seven-year highs and auto sales to new peaks.

In the second half of this year, the economic growth is expected to hold modestly above 2 percent. Outside of a rapidly easing housing market in the Greater Golden Horseshoe, almost every economic indicator is pointing higher, including factory shipments and retail sales, stated BMO Capital Economics.

“For 2017, 3.0 percent GDP growth will be the strongest in six years and twice last year’s rate”, added BMO Capital Economics.

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