Canada's economy expanded at an annualized rate of 3.3% in the second quarter of 2026, coming in just below the 3.4% estimate, according to data released Friday.

The quarterly growth follows a 0.3% increase in the first quarter. Gross domestic product on a monthly basis rose 0.3% in June, ahead of the 0.2% estimate and matching the prior month's 0.3% gain.

The report also showed the implicit price index accelerating quarter over quarter, rising 2.5% compared with 1.2% in the previous quarter. The faster pace in this inflation-adjacent gauge is a component central bank watchers track alongside GDP when assessing the balance between growth and price pressures. A preliminary estimate for July pointed to flat growth of 0.0% for the month.

The figures point to solid growth in the Canadian economy through the first half of the year, though the flat July estimate suggests momentum heading into the third quarter will be a key detail to watch in upcoming monthly releases.

Following the release, USD/CAD was trading in a narrow range, with the price holding between a cluster of moving averages. The pair remained above the 200-hour moving average at 1.3838 and the 200-day moving average at 1.38422, but below the 100-hour moving average at 1.3856.

GDP figures are among the broadest measures of economic activity, capturing the total value of goods and services produced. Quarterly annualized readings are closely watched by currency traders and central bank watchers as an input for monetary policy expectations at the Bank of Canada, whose rate decisions influence borrowing costs across the Canadian economy.

The data was reported by InvestingLive: Canada GDP Q2 annualized 3.3% vs 3.4% estimate.