Canada’s Economy Rebounds Sharply on Military, Housing (3)

The Canadian economy rebounded sharply from the initial damage of the trade war as imports fell and the country’s growth drivers shifted to housing and government spending.

Canada’s gross domestic product rose at a 2.6% annualized pace in the third quarter, Statistics Canada reported Friday from Ottawa. That’s the fastest pace of growth since the end of last year, and more than offsets a 1.8% decline in the second quarter that was driven by a major drop in goods exports.

The Bank of Canada and a Bloomberg survey of economists forecast a 0.5% quarterly increase.

Mark Carney, Canada’s prime minister. Government capital expenditures rose 12.2% in the third quarter, led by spending on weapons.

Source: Bloomberg

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