Transport trucks carry cargo containers at Vancouver's port. GDP data today were in line with the Bank of Canada’s projection but considerably worse than Bay Street analysts were anticipating.

The Canadian economy contracted sharply in the second quarter as trade tensions with the United States hammered exports and weighed on business investment.

Real gross domestic product declined 1.6 per cent at an annualized rate, the first quarterly contraction in nearly two years, Statistics Canada reported on Friday.

The result was in line with the Bank of Canada ’s projection but considerably worse than Bay Street analysts were anticipating. A Reuters poll ahead of the data expected a 0.6 per cent decline.

Financial markets increased their bets on another interest rate cut from the central ba

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