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Special Report

Canada GDP Research Brief

September 2022

Second Quarter GDP Growth Remains Positive;
Select CRE Sectors Deliver Strong Results

Economy continues to grow. Canada’s gross domestic product increased 3.3 per cent annually in the second quarter. However, year-over-year growth was lower than the Bank of Canada’s expectation of 4.0 per cent. Nonetheless, given the current environment of rising interest rates and elevated inflation, economic expansion is a positive outcome, especially given the contraction the United States is experiencing. Slower than expected growth was partly due to net trade weighing more heavily on GDP as imports surged by 31 per cent, while exports rose by a more moderate 11 per cent. Additionally, the 28 per cent annualized slump in residential investment far exceeded the initial expectation of 19 per cent. However, household consumption, which holds the largest share of overall GDP, rose by 10 per cent year-over-year. Looking forward, economic growth is anticipated to slow, with preliminary data suggesting a 0.1 per cent month-over-month contraction in July, resulting in a sluggish 1 per cent annualized growth rate for the third quarter. 

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