Amid a tariff war with its biggest trading partner, Canada's economy is showing some resilience. According to CBC News, Statistics Canada says the economy rebounded sharply in the second quarter, growing at its fastest pace in more than three years. It marks a turnaround after rumblings of a recession earlier this year.
The headline number pointed clearly upward. CBC News reported an annualized rate of growth of 3.3 per cent, which senior business reporter Peter Armstrong described as right on target and what people had been hoping to see across April, May and June. After earlier fears about the economy, the figure landed where analysts had wanted it.
Exports were at the heart of the rebound. According to CBC News, the quarter brought the biggest increase in exports in three years. That surge in what Canada sells abroad was a central driver of the stronger growth recorded over the April-to-June period, at a time when trade with the United States is under strain.
Armstrong said the big story is what happens when the country's energy sector flourishes. CBC News reported that higher energy prices in Alberta meant producers were getting more value for what they sell, and even though they are also sending more volume, the rising prices themselves lifted the value of their output.
The currency added to the effect. According to CBC News, because the Canadian dollar is low, that is driving up the value of exports. A low dollar makes those export sales worth more when they are counted, reinforcing the boost that the strong energy sector was already providing to the wider figures.
The strength was not limited to oil and gas. According to CBC News, metal products were up, and industrial machinery and equipment were up as well. Armstrong noted that these are the kinds of gains that tend to show up when the oil sector is doing well and the wider economy responds to it.