OTTAWA — Canada’s economy delivered a stronger-than-expected performance in the second quarter, growing at an annualized rate of 3.3% and providing fresh evidence of resilience despite continuing trade uncertainty.

Statistics Canada data showed that real GDP increased 0.8% from the first quarter to the second, while June economic activity rose 0.3% from May. First-quarter growth was also revised upward to 0.3%, meaning Canada avoided the technical recession previously feared by some economists.

The rebound was supported by a 3.6% increase in exports, stronger household spending and a 2.3% rise in business investment. Consumer spending increased 0.8%, marking its strongest quarterly gain in three quarters.

However, the positive figures come as Canada faces renewed pressure from the United States. New U.S. tariffs on Canadian goods and Ottawa’s retaliatory measures are creating uncertainty for manufacturers, exporters and businesses that depend on cross-border supply chains.

Economists are therefore watching closely to see whether the strong second-quarter performance can continue. Early indications suggest economic momentum may be weakening, with July output expected to show little or no growth.

Canada’s latest GDP figures offer a significant boost to the economy, but the escalating trade dispute could become the biggest threat to growth during the second half of 2026.