Issue 18-151 Gross Domestic Product, Second Quarter 2018

August 31, 2018

The Canadian economy picked up speed in the second quarter, expanding 0.7% (real GDP at market prices, seasonally adjusted, chained 2007 dollars), following three quarters of steady, but more modest, growth of 0.4%.

The acceleration of the economy was largely due to international trade, as the value of exports of goods and services jumped 2.9% in the second quarter, well above the 1.6% increase in imports. As a result, the trade deficit shrank to $14.3 billion.

Final domestic demand (spending by households, non-profit institutions, businesses and government) rose 0.5%, boosted by household and business spending. Household final consumption expenditures were up 0.6%, double the increase in the previous quarter. At the same time, business investment in equipment and structures advanced 0.4% after posting stronger growth (+0.6%) at the beginning of the year. Spending on non-residential structures (+0.5%), machinery and equipment (+0.3%), residential structures (+0.3%) and intellectual property (+0.2%) all increased in the second quarter. Government final consumption expenditures were also up (+0.4%), but government sector investment in fixed capital fell 0.5%.

Data Source: Statistics Canada