Canada GDP contracts 1.6% in Q2, US tariffs weigh on exports, first decline in seven quarters

Canada’s economy experienced a contraction of 1.6% in the second quarter, marking the first GDP decline in seven quarters. This downturn was largely attributed to a sharp 7.5% fall in exports, significantly impacted by tariffs imposed by the US. The decline has fueled speculation that the Bank of Canada might consider cutting interest rates in September.