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Analysts at National Bank Financial suggest that in Canada, the week will feature Q2 GDP on Friday and monthly readings to date hint at a strong contribution from trade, the result of surging exports in the quarter.

Key Quotes

“Investment in residential and non-residential structures may also add to the headline growth number based on previously released data on construction spending. Judging from retail sales data, growth in consumption could have slowed in the quarter but should still contribute to GDP thanks in part to stellar employment gains.”

“All told, GDP may have expanded no less than 3.0% in annualized terms in Q2 following lackluster showings in 2018Q4 and 2019Q1 (+0.3% and +0.4%, respectively). That would leave the Canadian economy on pace for a 1.4% expansion in 2019.”

“Looking at monthly data, the handoff to Q3 looks decent, with June GDP on pace to expand 0.1% on gains in the retail and wholesale sectors.”