Canada’s Economy Accelerates in Q2 2026

2026-08-28 12:38 By Joana Ferreira 1 min. read

Canada’s economy expanded 0.8% in the second quarter of 2026, following an upwardly revised 0.1% increase in the previous three-month period, driven by stronger exports, household spending and business capital investment.

Exports rose 3.6%, the largest increase since Q1 2023, led by a 27.0% jump in passenger cars and light trucks as Canadian auto production rebounded.

Higher exports of metals, energy products, and industrial machinery and equipment also supported growth.

Household spending rose 0.8%, led by higher spending on investment services, passenger vehicles and rent.

Business investment strengthened, with engineering structures up 2.3% and machinery and equipment spending reaching its highest level since Q2 2024.

Investment in computers and peripherals surged 16.7%, mainly due to higher imports of processing units used in data centres.

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



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Canada’s Economy Accelerates in Q2 2026
Canada’s economy expanded 0.8% in the second quarter of 2026, following an upwardly revised 0.1% increase in the previous three-month period, driven by stronger exports, household spending and business capital investment. Exports rose 3.6%, the largest increase since Q1 2023, led by a 27.0% jump in passenger cars and light trucks as Canadian auto production rebounded. Higher exports of metals, energy products, and industrial machinery and equipment also supported growth. Household spending rose 0.8%, led by higher spending on investment services, passenger vehicles and rent. Business investment strengthened, with engineering structures up 2.3% and machinery and equipment spending reaching its highest level since Q2 2024. Investment in computers and peripherals surged 16.7%, mainly due to higher imports of processing units used in data centres. On an annualized basis, the economy grew 3.3%, the fastest pace since Q3 2024 and broadly in line with market expectations of 3.4%.
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