Canada: Annualized real GDP grows by 3.3% in Q2 vs. 4.5% expected

• Canadian economy expanded at a softer pace than expected in the second quarter.
• USD/CAD trades in positive territory above 1.3100 after the data.

Real Gross Domestic Product (GDP) in Canada expanded at an annualized rate of 3.3% in the second quarter, the data published by Statistics Canada showed on Wednesday. This print followed the 3.1% growth recorded in the first quarter and missed the market expectation of 4.5%.

On a quarterly basis, real GDP was up 0.8%. “Growth in the second quarter was moderated by declines in housing investment and household spending on durable goods and by a rise in imports that exceeded exports,” Statistics Canada noted in its publication. “Final domestic demand rose by 0.7%, following a 0.9% increase in the first quarter.”

Market reaction

The USD/CAD pair edged higher after this data and was last seen gaining 0.25% on the day at 1.3123.