INSTANT VIEW-Canada's economy grows by 2.2% annualized rate in first quarter

TORONTO, May 30 (Reuters) - Canada's economy grew faster than expected in the first quarter, expanding by a 2.2% annualized rate, data showed on Friday.

Market reaction: CAD/

LINK: https://www150.statcan.gc.ca/n1/daily-quotidien/250530/dq250530a-eng.htm

COMMENTS

ANDREW KELVIN, HEAD OF CANADIAN AND GLOBAL RATE STRATEGY AT TD SECURITIES

"I would say the Q1 numbers being a little bit better than expected is a positive development. Some people may focus on that final domestic demand was effectively flat but a lot of that was due to softer government spending. We did see positive business investment and I think that is really important because that was a category we were looking at to suffer in particular due to uncertainty on the trade front."

"We're not yet seeing the signs of a material hit to activity due to trade tensions and for that reason, I think it should be regarded as a positive surprise."

"On the basis of the GDP data, it's difficult to make the case for a rate cut in June."

"Looking forward, we still expect the economy to show some degree of weakness in the middle part of this year. We still look for growth to be essentially flat for Q2 and Q3, which we think will require additional policy easing from the Bank of Canada."