Canada's Economy Rebounds: July GDP Growth Boosted by Mining & Manufacturing

Canada's economic landscape showed signs of recovery in July as the country's gross domestic product grew by 0.2% after three months of contraction, according to data released on Friday. Growth was largely propelled by gains in mining, manufacturing, and wholesale trade, offering hope amid broader economic challenges.

Despite the encouraging July figures, a preliminary estimate indicated that August would likely see no growth, though it is expected to avoid a contraction. This cautious outlook is compounded by the potential for lingering trade disruptions with the U.S. to further impact key sectors.

Statistics Canada reported that goods-producing industries fueled July's growth with a 0.6% rise, driven by mining, quarrying, and oil and gas extraction, while services such as real estate saw moderate gains. Meanwhile, the Bank of Canada hinted at possible rate cuts to mitigate future economic risks.

(With inputs from agencies.)