Canadian Real GDP Records Fourth Consecutive Quarter of Growth in Q2 2022

Statistics Canada (StatsCan) reported today (8-31-22) that in Q2 of 2022, real gross domestic product (GDP) in Canada increased 0.8%, The increase in Q2 GDP was propelled by increases in business investment in inventories, non-residential construction, machinery and equipment, and household spending on service and semi-durable goods. The Q2 GDP increase marks the fourth consecutive quarterly Canadian GDP growth.

Stats Can notes that the increase in Q2 GDP was offset by declines in housing investment and household spending on durable goods and by a rise in imports that exceeded exports. Final domestic demand rose by 0.7% in Q2, following a 0.9% increase in Q1 of 2022.

Predominantly the result of rising incomes, overall household disposable income increased $3.6 billion (CAD) at a quarterly rate of 1.0% in Q2 of 2022. This was more than offset by a $15.1 billion expansion in household consumption (+4.3%) as an increase in the volume of real expenditures was significantly bolstered by price increases across the majority of consumption components. The result was a decline in net savings in Q2, as the savings rate fell to 6.2% from 9.5% in Q1.