Canada’s GDP expanded 3.7 per cent annualized in the second quarter of the year, according to Statistics Canada.

Economists were expecting 3 per cent growth.

“The Canadian economy came roaring back following a couple of quarters of near stagnation,” said CIBC economist Royce Mendes in a research note.

Exports drove growth with a 3.7 per cent rise, following declines in the two previous quarters.

Non-residential business investment fell 16.2 per cent, a bad sign for the economy going forward.

Growth in household spending slowed to 0.1 per cent.

“Still, June's 0.2% gain in GDP does leave the third quarter starting on solid footing as a result of the handoff,” said Mendes.

“The solid increase in the headline numbers leaves our call intact for the Bank of Canada to remain patient on cutting rates for the next few months, but we'll get more information when we finally hear from the central bank next week.”

Fore the month of June, GDP rose 0.2 per cent.

Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains

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