Canadian economy grew in Q2 beating Bank of Canadas forecast – National [Video]

The economy grew at an annualized rate of 2.1 per cent in the second quarter — beating the Bank of Canada’s forecast — but continued to shrink on a per-person basis.

Statistics Canada’s real gross domestic product report on Friday said growth was supported by higher government spending, business investment in engineering structures as well as machinery and equipment and household spending on services.

Meanwhile, the economy posted declines in exports, residential construction and household spending on goods.

Economic growth halted toward the end of the quarter as the real gross domestic product was essentially unchanged for June. A preliminary estimate suggested the economy remained flat in July as well.

The data comes ahead of the Bank of Canada’s interest rate decision on Wednesday.

Economists are widely expecting the central bank to lower its key policy rate by a quarter of a percentage point, which would bring it to 4.25 per cent.

Bank of Canada …