Growth is stable and the economy is strong. Here’s how to invest in the country

Canadian gross domestic product increased 0.8% in the second quarter, as it did in the first quarter, to 4.56% growth from a year ago, an acceleration compared to the 2.9% achieved in the first quarter. So this is a positive result that shows no slowdown compared to the previous quarter, even if expectations were higher (expected growth was 1% on a quarterly basis).

GDP isn’t the only strong number coming out of the Canadian economy. Unemployment fell to an all-time low of 4.9% in July. Foreign trade also recorded the highest surplus in the second quarter as in the first quarter. Issues affecting the entire world, including a global recession and inflation that was 7.6% in July, will obviously weigh on the Canadian economy’s future trajectory. Despite this, the prospects for Canada are still positive and, as you can see in the chart below, they are better than the Eurozone and sometimes the US.

Following the wheel of the US dollar, the Canadian dollar has seen a lot of movement over the past two years. At current prices, even taking into account the outlook for GDP and inflation, the Canadian currency is now slightly overvalued against the euro. So don’t buy Canadian dollar bonds. On the equity front, on the other hand, you can focus on the Canadian list, but only if you follow a strategic, balanced and dynamic investor.