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Previewing the monthly Gross Domestic Product (GDP) data from Canada next week, TD Securities analysts said that they expect the economic activity to expand by 3.9% in July. Statistics Canada's flash estimate was for a GDP growth of 3%.
"GDP is expected to rebound by 3.9%, above the flash estimates from StatCan for 3.0%, following broad strength across activity data for May."
"This would still leave output 14% below year-ago levels but provides a strong start to the recovery, especially with signs of accelerating growth in June, and leaves us on track to outperform BoC expectations for a 43% contraction in Q2."