Canada's GDP rises 3.3% in Q2, coming in below estimate

ANKARA

Canada's gross domestic product (GDP) rose 3.3% in the second quarter of 2022, but failed to beat market estimates of a 4.5% expansion, Statistics Canada announced on Wednesday.

The second-quarter gain in the GDP implicit price index, which reflects the overall price of domestically produced goods and services, marked the largest jump since the third quarter of 1974, the statistics agency said in a statement.

Nominal GDP jumped 4.2% to reach $2.8 trillion in the second quarter, it added.

Real GDP rose 0.8% in April-June from January-March, marking the fourth consecutive quarterly rise.

This was driven by "increased business investment in inventories, non-residential structures, machinery and equipment, and household spending on services and semi-durable goods," the agency said in a statement.

Growth in the second quarter, however, was "moderated by declines in housing investment and household spending on durable goods and by a rise in imports that exceeded exports," it added.

In terms of trade, the ratio of the price of exports to the price of imports was up 5% in the second quarter, led by an 8.8% increase in export prices, primarily due to a 24.5% hike in the price of exported crude oil and crude bitumen, according to Statistics Canada.

Household incomes climbed in the second quarter due to higher compensation of employees, while government transfers to households fell 6.6% in the second quarter since government transfers declined as COVID-19 support ended.