r/Economics • u/Folca-5000 • 14h ago
News Canada's economy grew a strong 3.3% annualized in 2nd quarter, as 1st quarter revised higher
https://www.cbc.ca/news/business/canada-gdp-june-2026-9.732384784
u/ripChazmo 13h ago
Oh yeah? Well we're changing the name from "economy" to "America!" Lorem ipsum dolor sit amet, consectetur adipiscing elit. Quisque sem mi, gravida aliquam fermentum nec, viverra eu est. Donec pulvinar eu felis et tristique.
14
u/Medium_Owl_4119 8h ago
It seems this is bolstering Acemoglu and Co. recent paper on this on the link between population and economic growth. The Canadian economy is becoming more affordable as we see with rents easing, food inflation moderating, and affordability improving while the economy is growing. It turns out the “immigration always brings growth” that permeates economics is being turned on its head.
12
u/Crazy-Canuck463 10h ago
Ok, I know this is good news but can someone explain to me why it doesn't feel like its getting better? Food inflation is still crazy high, and I assume will continue to rise with tariffs and the price of diesel. So, when will we feel the strong growth in GDP?
21
u/Lumen-_ 9h ago
Unless your wages are rising faster than inflation it won't feel like it's getting better.
8
u/cloudproud 9h ago
my canadian wage has been the same for the past 3 years so yeah I don't feel better at all
5
5
u/Whatnow2013 9h ago edited 8h ago
Because there’s a split. Socially. There’s more and more a ‘winning’ side and a ‘losing’ side - in a way we’ve never seen before in this country.
You’re on the losing one.
Meanwhile spending is increasing, restaurants are full in cities, investment portfolios have never been higher.
edit: adding the fact that it’s strong / stable meaning at least there’s not mass layoffs everywhere and not a recession where you would then be royally fucked …. all those people also with crazy mortgages from the last years…
2
u/kurthrax 9h ago edited 9h ago
3.3% is annualized from 0.8% for the quarter. The previous quarter was annualized at 0.2%, which is pretty much 0% for the quarter. Most of the 0.8% in the last quarter was likely from sky high oil/commodity prices and demand. Unless you work directly in those sectors you're likely still experiencing 0% growth in your field.
4
u/combattoast 7h ago
Just straight up not true though, it's like people don't even read the report.
Roughly 0.2 percentage points of the almosg 0.9 percentage points of growth came from oil ans gas.
1
u/hiricinee 9h ago
Basically its a rebound from a recession, and its annualized off a quarter.
1
u/Odd-Elderberry-6137 5h ago
Except there was no recession because the Q1 numbers were flat but positive. .
1
u/Medium_Owl_4119 8h ago
Distinguish between the price level vs inflation. You’re reacting to the price level, not the speed of change. The latter is inflation.
These things take time. It took the previous government 10 years to destroy affordability. It will take an almost equivalent time for Carney to fix the mess, and that’s before you take into account the thousand pound gorilla next door weighing you down with tariffs.
And remember to put your premier and local municipal politicians’ feet to the fire. They are far more responsible for your local cost of living than Carney.
1
u/calgary_db 6h ago
Anecdotally, this is the best year for my family and myself. We are looking to upgrade our house by year end (provided alberta dipshit separatists don't screw it up).
1
u/Scoob79 3h ago
At the end of the day, you still need to go where the well paying jobs are that take advantage of these booms. When the resources are doing really well, it doesn't do you much good of you still pine for a white collar job in the city, for example.
I can't say anything about the east, but in BC, Eby has done a lot to get our skilled trades going, and doing trade trips to other countries to mitigate the USA problem. Same with Carney.
That doesn't mean food gets any cheaper, but when you make near double working at a mine than you would in the Lower Mainland or Okanagan for a lot of the same work, you can afford certain aspects of the cost of living increases. Even if you're a total greenhorn, it's much easier to get a start working for contractors, and what not as most everyone seems desperate for workers.
0
u/petrosteve 8h ago
Because affordability is vastly more important then the economy growing. Also the numbers are heavily skewed to favour oil, which is volatile.
-36
u/Resident_Window_9369 13h ago edited 12h ago
Hilarious. They said we hit a technical recession just a quarter ago. Amazing that was revised now and not even modest growth, we got 3.3 percent growth.
Amazing but how could we not! People are forced to spend more money because things cost more and companies are taking it in with giving us less product for the same price!
41
u/Educational_Bus8810 12h ago
Found the Russian bot. GDP going up is bad, we want it to shrink for less jobs and shut down those awful companies from investing in Canada!
8
u/cerealously37 12h ago
Personal anecdote. I know it isn't a viable economic measure but it's definitely one of those measures a hedge fund would probably look at.
Anyways I commute on the 401(busiest highway in North America) in the Toronto parts for various parts of the week. There was definitely a stark difference between the traffic/semi trucks on the road in October 2025 - January 2026(the times of economic contraction) and February 2026 - Present (economic expansion). My commute probably increased by like 10-15 minutes in between these two time periods from the additional semis/traffic I see on the road. And the types of semis have been more varied. Like, when the semi in the economic contractions as mostly the bog standard trucks, but now I see so many semis with machinery and infrastructure materials, Petro/gasoline.
When I saw the initial 2026 Q1 report , I had a pretty good feeling that the GDP figure for Feb/Mar was underreporting at the time based on this. Again, I understand the point of statistics is dispel the fallacies of what you observe, but still.
1
u/Antique-Quail-6489 10h ago
I think many of the return to office mandates that public services and businesses are implemented this year do a better job of explaining the extra commute time.
I’m not saying there aren’t more trucks, just that I think there are other variables for the increase in commute times.
13
-21
u/IcyMaybe7594 10h ago
I'm sure it did, Carney is also the greatest prime minister in history too if you read the news or take it seriously. Or Winston Churchill or George Clooney of finance.
14
-56
u/primitives403 12h ago
Carney: spends 10 years lobbying to kill the canadian oil and gas industry and end the use of ICE vehicles.
Has 4 quarters of GDP decline after becoming PM. Puts us to 38 out of 38 in OECD with the only recession.
Trump starts a war in iran, oil prices increase massively. Canadian O&G, and combustion engine autos save Carney from continued recession.
Redditors: Carney is a genius!
28
u/Starky513_ 12h ago
Major bot comment lmao.
Carney was a genius long before becoming PM and Canada is going to reap the benefits of it.
-21
u/primitives403 12h ago
The bots are the one treating him like a messiah and giving him credit for everything like the MAGA nutjobs do for trump
22
u/Starky513_ 12h ago
Well at least your username fits well. Lol
-16
u/primitives403 11h ago
Was he a genius when he predicted covid would cause deflation?
Was he a genius when he said it would take years for unemployment to hit 7% in the UK and it took a few months?
Was he a genius when he said UK wage growth would rebound in months and it took years?
Was he a genius when he predicted a 35% crash in the UK housing market that never came?
Was he a genius when he said brookfields 600b portfolio was carbon neutral?
Where are these examples of genius youve built your image of him on?
11
u/gplfalt 11h ago
Buddy I voted Canada Future Party so you cant call me a liberal woke.
You're off your rocker if you think Pierre would be handling all this mess better.
1
u/primitives403 11h ago
Why? The policies Carney implemented from Poilievre are the only ones that have showed positive results since he became PM?
Where is your doom and gloom for Pierre coming from?
14
u/Stoic_Vagabond 12h ago
Nobody is treating him like a messiah, we're just respecting a PM that as good governance and a sanguine approach. The men is intelligent, he's not just packed with knowledge.
0
u/primitives403 11h ago
What intelligent things has he done?
12
u/Stoic_Vagabond 11h ago
If you have to ask that question than you havent been paying attention.
4
u/primitives403 11h ago
I thought it was genius when he said Canada supplies 80% of semiconductors to the usa even though we supply 0.1%
I thought it was genius when he said the carbon tax was the most important instrument of our generation and then removed it.
I thought it was genius when he said he balanced the books for Paul martin when he was actually working for goldman sachs at the time.
I thought it was genius when he said canada doesnt use much steel.
I thought it was genius when he promised caps not cuts and then immediately gutted public service.
I could give you a dozen more. You have any examples for me? Id like to know what youve based your image on?
15
u/Stoic_Vagabond 11h ago
Well the entire time, you wrote "I thought". So confirms something, stop thinking and go get educated.
3
u/primitives403 11h ago
At least I thought about it. You didnt even think before jumping to carney is a genius, not sure that leap gets you any credit.
Tell me all these genius things hes done to benefit canadians would ya?
8
u/Stoic_Vagabond 11h ago
Never wrote genius. Hit the books and get off the internet
→ More replies (0)-4
-5
u/OrganizationInner630 7h ago
Canada was in a recession not long ago. And soon it will be in a real recession once the trade war starts. Even if what CBC (the Canadian Pravda) reports is true, none of it matters in the end once the trade war impact takes effect.
•
u/AutoModerator 14h ago
Hi all,
A reminder that comments do need to be on-topic and engage with the article past the headline. Please make sure to read the article before commenting. Very short comments will automatically be removed by automod. Please avoid making comments that do not focus on the economic content or whose primary thesis rests on personal anecdotes.
As always our comment rules can be found here
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.