Canadian Imperial Bank of Commerce: Canada's economic growth exceeds expectations but hides concerns

Zhitong
2025.05.30 13:30

Andrew, an economist at the Canadian Imperial Bank of Commerce, stated that Canada's annualized GDP growth rate of 2.2% in the first quarter exceeded expectations, but is essentially "gold-plated on the outside, rotten on the inside." Data shows that exports surged by 6.7%, and businesses also increased their inventories. Grantham pointed out that weak domestic demand is the true picture, reflecting declining household confidence and businesses choosing to cancel or reduce investment plans amid high uncertainty in trade policies. The preliminary estimate for economic growth in April is a quarter-on-quarter increase of 0.1%, mainly driven by the commodities sector. He added that assuming the data for May and June remains flat, early tracking for the second quarter shows an economic growth rate of only 0.5%, far below the long-term potential level, indicating signs of overcapacity in the economy once again

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