Canadian GDP was the strongest since 2000
Year-over-year growth in the Canadian economy in May was the best since 2000 in an upbeat signal for the loonie and a hawkish sign for the Bank of Canada.
Brian DePratto, senior economists at TD:
"There appears to be no holding back the Canadian economy, at least for now. Making a robust GDP print even more impressive was that those sectors that did decline did so either due to government policy (real estate), normalization after a robust April (arts and entertainment), or one-off factors (construction), suggesting an even healthier underlying signal."
Avery Shenfeld, economist at CIBC Economics:
Upward revisions to growth forecasts will be bullish for the C$ and bearish for fixed income, although we're still inclined to see the Bank of Canada waiting until October, given low inflation and a roaring currency."
BMO chief economist Doug Porter:
"Every single major surprise for the [Canadian] economy this year has been to the upside... The big surprise was a massive 13 per cent snapback in ... oilsands, which alone accounted for half of the rise in GDP."
