Canada's gross domestic product expanded at a 0.3% quarterly rate in the latest period, exceeding expectations and translating to a 3.3% annualized pace, official data showed. The reading follows a 0.3% gain in the prior quarter and marks a rebound from the soft patch earlier in the year.
The expansion contrasts with stagnation in France, where GDP growth stalled at 0.0% quarterly, and with modest gains in Germany at 0.3% and Japan at 0.3%. The United Kingdom also reported 0.3% growth. The U.S. continued to lead among major developed economies, with a 1.5% quarterly increase and a GDPNow model estimate of 4.6% annualized.
Canada’s current account shifted into an $8.8 billion surplus, reversing a $8.3 billion deficit in the prior period. The improvement underscores stronger export performance and reduced import costs, aligning with the pickup in domestic activity.
The data suggests Canada is outperforming much of Europe and Japan, though trailing the U.S. in growth momentum. Analysts note that sustained current account surpluses could support Canadian equities, particularly in resource and export-oriented sectors, by reinforcing currency stability and corporate earnings visibility.
