Overview

• Statistics Canada said real GDP fell 0.4% in Q2 from Q1, an annualized 1.6% decline and the first quarterly contraction since late 2023.
• Exports of passenger cars and light trucks dropped 24.7% after U.S. tariffs, with machinery, equipment and travel services also weakening.
• Business investment softened, including lower spending on machinery and equipment, compounding the export shock.
• Finance Minister Chrystia Freeland said Ottawa is working with industry to protect jobs and investment in autos and manufacturing, as economists flag policy implications for the September decision.
• Investors weighed mixed signals as Canada’s S&P/TSX finished flat and U.S. indexes set records; Nvidia beat forecasts but noted slower growth in AI‑chip sales.