The Canadian economy grew at an annual rate of 3.3 per cent in the second quarter, bringing the quarterly reading below estimates and an early look at July suggests a contraction.
The Canadian economy stayed flat in May, with real gross domestic product showing neither growth nor contraction after a 0.3 per cent expansion in April.
The deputy governor of the Bank of Canada says it may need to raise its key interest rate to three per cent or beyond to ensure inflation does not become entrenched.
Statistics Canada said Tuesday real gross domestic product grew at an annualized rate of 3.1 per cent in the first quarter, helped by business investment and household spending.
Figures suggest economic activity can quickly bounce back when the virus is contained.
'The first quarter of 2021 is shaping out to be a very good one for Canada.'
Statistics Canada said the economy grew at an annualized rate of 9.6% over the last three months of 2020
Think-tank says the local economy "will not escape the impacts of the COVID-19 pandemic.”
Gains have been linked to the loosening of restrictions that forced non-essential businesses to close this spring, but haven't been enough to haul the economy back to pre-pandemic levels.
GDP contracted at an annualized rate of 38.7%, the worst posting for the economy dating back to when comparable data was first recorded in 1961.