Canada’s economy grew at the fastest pace in a year in the second quarter as exports surged, though a slowdown in business investment may cast some clouds over the brighter economic picture.

Gross domestic product expanded at a 2.9 per cent annualized pace from April to June, faster than a 1.4 per cent increase in the first quarter of 2018, Statistics Canada said in a report Thursday from Ottawa. Exports jumped by an annualized 12.3 per cent, the biggest quarterly gain since 2014.

Still, the numbers may be a slight disappointment as slowing business investment brought growth in below analyst forecasts -- a development that may also give the Bank of Canada pause about speeding up interest-rate hikes.

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