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

VIDEO: Orcas put on a show near Hornby Island

Louis Jobodin shares photos and video of his experience

Passengers bound for Victoria say Sunwing left them stranded in Abbotsford

Company says late arrival led to difficulties securing accommodation, transportation

Island-filmed TV series gets third season

Crews returning to Parksville Qualicum Beach to film in the spring

Ladysmith marijuana producer bought by Aphria in $230M deal

Ontario licensed marijuana producer Aphria has reached an agreement to acquire Ladysmith-based… Continue reading

Sutherland steps down as SOS executive director

From receptionist to executive director

Views in The NEWS, Jan. 16

We asked: What is a necessity for you on a camping trip?

Did you get Hitched in Courtenay on Sunday?

The first annual wedding show saw big crowds and included two fashion shows

Ice dancers Virtue and Moir to carry flag for Canada at 2018 Olympics

The pair earned a gold medal at the 2010 Vancouver Olympic Games

Corfield Street work continues in Parksville

Delays, alternating traffic can be expected

Highway maintenance to cause delays in Whiskey Creek

Alberni Highway motorists face lane closures morning of Jan. 18

UPDATE: Police continue to seek missing Qualicum Beach woman

Oceanside RCMP requesting public assistance in locating Carmel Georgina Gilmour

Diplomacy on agenda at North Korea summit in Vancouver

Foreign ministers from 20 countries are meeting Tuesday to discuss security and stability on the Korean Peninsula.

Kids chained in Calif. house of horrors; parents arrested

Authorities say an emaciated teenager led deputies to home where her 12 brothers and sisters were locked up in filthy conditions

Most Read