Canada's GDP is expected to grow by 2.5% in the second quarter

Golden Ten Data reported on June 30 that Andrew Grantham, economist at CIBC Capital Markets, stated that after economic data outperformed expectations in April, Canada's GDP in the second quarter is expected to achieve an annualized growth of 2.5%. In April, GDP across industries increased by 0.5% month-on-month, and Statistics Canada's preliminary estimate indicates that GDP grew by 0.1% month-on-month in May. Grantham noted that a 2.5% annualized growth rate in the second quarter would far exceed the Bank of Canada’s forecast of 1.5%. However, Grantham pointed out, “From the perspective of the output gap, this is not enough to offset the annualized decline of 0.1% in the first quarter.” Grantham also stated that the firm maintains its previous forecast that the Bank of Canada's policy interest rate will remain unchanged this year.