Canada economy grew 2.9% in Q2

[OTTAWA] Canada's economy grew at an annual rate of 2.9 per cent in the second quarter, lifted by a rise in exports and services, the national statistical agency said Thursday.

The increase was slightly less than expected by analysts, who had projected growth of three percent during the three months ending June 30.

Growth was mainly driven by an increase in export volumes - up 2.9 per cent and the largest gain in four years, according to Statistics Canada.

Exports in the quarter were led by energy products. Foreign sales of pharmaceutical products and business jets also contributed to the rise and the outpacing of a small uptick in imports.

Consumer spending was also up a notch, largely due to higher housing and utility costs (water, electricity and gas), reversing a downward trend over the previous three quarters.

Business investments, however, slowed in the quarter.

AFP