Canada’s economy gains steam amid rising global uncertainty
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Skip to ContentNewsLocal NewsProvincialCanadaWorldSpecial-SectionsSportsSports BettingLocal SportsBaseballBasketballFootballCurlingHockeyOther SportsAuto RacingEntertainmentLocal EntertainmentMoviesMusicTelevisionBooksGamingCelebritiesLifeTravelFoodHealthComicsPuzzlesAdviceOpinionEditorialColumnLettersAll NewspapersAdvertisingAdvertising With UsAdvertising SolutionsPostmedia Ad ManagerSponsorship RequestsClassifiedsObituariesLives ToldBusiness AdsJobsDrivingHealthingPuzzmoDiversionsPuzzlesComicsNewslettersProfileSettingsMy SubscriptionsNewslettersCustomer ServiceFAQNewsSportsEntertainmentLifeOpinionAll NewspapersBusiness AdsJobsDrivingHealthingPuzzmoNewslettersBusiness & EconomyOpinionColumnCanada’s economy gains steam amid rising global uncertaintyPublished Aug 08, 2026•Last updated 25 minutes ago•2 minute readMike CandeloroCanada’s economy delivered robust growth in May, expanding 0. 3 per cent month over month, exceeding expectations and building on April’s revised 0. 6 per cent gain. June’s preliminary estimate of 0. 2 per cent growth suggests that Q2 GDP could reach an annualized 3. 4 per cent, a meaningful recovery after two consecutive quarters of weakness that had prompted recession concerns. Growth was broadly based, with 13 of 20 tracked sectors reporting expanded output. The resources sector and manufacturing led the advance, while the services sector grew 0. 2 per cent. However, headwinds are mounting. Trade policy uncertainty has intensified following the failure to secure a long-term United-States-Mexico-Canada-Agreement renewal, with Washington threatening tariffs that are set to take effect on Aug. 19. Combined with elevated energy prices and Middle Eastern geopolitical tensions, household purchasing power has deteriorated—a headwind for consumer spending in the back half of 2026. Given these crosscurrents, the Bank of Canada is likely to maintain its neutral policy stance through year’s end, absent a significant shift in economic conditions. Recommended VideosCanada’s merchandise trade surplus expanded to a four-year high in June, driven by record-high exports of CA$77. 5 billion that rose for a fifth consecutive month. Six of 11 product categories recorded gains, with metal and non-metallic mineral products leading the charge. Gold exports surged 27. 9 per cent, reaching an extremely strong 71. 2 per cent increase over the past 12 months, and copper exports rose 20. 0 per cent to a record CA$934 million, entirely attributable to volume growth fueled by strong global demand for electricity-generation commodities serving data centers. Excluding gold and copper, exports contracted 3. 0 per cent as energy prices fell amid easing Middle Eastern tensions. The bilateral trade picture reflected these energy headwinds with the U. S. surplus compressing to C$10. 0 billion from CA$11. 1 billion. On the import side, electronic and electrical equipment surged, reflecting AI-driven demand. Computer and peripherals imports—closely tied to data center expansion—jumped 59. 0 per cent to a record CA$3. 0 billion. Growth in machinery and equipment imports suggests robust business capital spending, which will likely contribute positively to Q2 economic growth. With continued elevated uncertainty around geopolitics and trade, Canadian financial markets will be highly sensitive to any developments in these areas for the remainder of the year. Mike Candeloro, senior portfolio manager and wealth advisor with RBC Dominion Securities and the head of The Mike Candeloro Wealth Management Group supplied this article. RBC Dominion Securities Inc. and Royal Bank of Canada are separate corporate entities, which are affiliated. Member CIPF. Mike can be reached atMichael. candeloro@rbc. comYou can also visit his website atwww. michaelcandeloro. comTo read Mike’s archived articles please visitMike Candeloro / Special to The Nugget | North Bay NuggetJoin the ConversationThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more aboutcookies here. By continuing to use our site, you agree to ourTerms of UseandPrivacy Policy.