CANADA ELECTION .21 1

CANADA: GDP up 2.1% in Q2

The Canadian economy grew more than expected in the second quarter, driven by higher public spending, business investment and household spending on services, the national statistics agency announced on Friday.

Gross domestic product rose by 2.1 percent on an annualized basis, but GDP per capital continued to decline for a fifth consecutive quarter.

Analysts had predicted an increase of around 1.5 percent for GDP in the second quarter.

The GDP figures come before Canadaโ€™s central bank is to announce its monetary policy next week, with observers expecting a third consecutive lowering of its key lending rate.