Canada’s economy has shaken off two quarters of stagnant activity and is now tracking a meaningful rebound in the second quarter of 2026, according to a forecast update by RBC Economics senior economist Claire Fan. The recovery is being driven by resilient household spending, a pickup in business investment, and expanding net trade — a combination that prompted Fan to revise Canada’s Q2 annualised GDP growth estimate upward to 2.2% from a prior 1.7%.
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