Economy beats expectations with 4.5% growth

Household spending, exports drive economy past expectations

Canada’s economy performed far better than expected in the second quarter, with growth at an annual rate of 4.5 per cent.

A consensus of economists had predicted the quarter would be 3.7 per cent, on par with the first quarter.

The two strong quarters give Canada its best economic start to a calendar year since 2002.

Statistics Canada says the increase in real gross domestic product in the second quarter was driven by household spending and exports, particularly in the form of energy products.

Exports expanded 2.3 per cent from April to June, up from 0.4 per cent in the first three months of the year.

The numbers also show households spent 1.9 per cent more on goods in the second quarter — the strongest gain since 2007.

The increase came even though housing investments contracted 1.2 per cent during a quarter that saw the introduction of a new tax on foreign buyers in Ontario. In comparison, residential real estate expanded 2.9 per cent in the first quarter.

The quarterly acceleration was also fuelled by an eighth-consecutive monthly increase in June that included a two per cent expansion in the construction sector — its largest gain in four years.

The Canadian Press

Just Posted

Langley Hospice issues formal statement opposing MAiD

Board of directors responds to ‘groundswell of opposition’ from community and volunteers

Aldergrove family first in B.C. to receive reimbursement for life-altering arthritis drug

Effective medication used to treat rare form of juvenile arthritis costs $19,000 a month

Lower Mainland dance squad set to show off hip hop skills in L.A.

TwoFourSeven Company prepping for prestigious World of Dance event in April

Top-ranked Lightning strike for Valley title

Langley Christian Grade 8 girls basketball team caps off season with Fraser Valley banner

VIDEO: Gators depth leads team to Valley title

Walnut Grove’s Kevin Kao earns most valuable player honours in leading Gators to victory

VIDEO: Top 10 B.C. budget highlights

The NDP is focusing on childcare, affordable housing and speeding up the elimination of MSP premiums

BC Wine Institute to take legal action against Alberta

The BC Wine Institute to seek injunction to protect B.C. wineries from Alberta wine ban

BC BUDGET: Tobacco tax hike may light up black market in smokes

NDP government adds another 56 cents per pack as of April 1

4 treatment centres to open in memory of B.C. teen who died of an overdose

A treatment centre for addictions is opening in Penticton after the first one fell through

BCHL Today: Merritt peaking at right time and Taylor signs with UNH Wildcats

BCHL Today is a (near) daily look at what’s going on around the league and the junior A world.

Violent sex offender found not guilty of breach for smoking marijuana

Once designated a dangerous offender, Kevin Miller reportedly back at Chilliwack halfway house

Video: B.C. firefighters featured in quirky video

Oliver Fire Department posts video about their B.C. volunteer firefighter spring training seminar

OLYMPIC ROUNDUP: Two more medals push Canada into third place

A gold in ski cross and a bronze in bobsleigh as men’s hockey advances to the semis

5 to start your day

NDP rolls out first budget, piano teacher accused of sex assault involving former students and more

Most Read