Canada's economy exited a weak first quarter on stronger footing and momentum is building, Royal Bank CEO Dave McKay says. Job numbers have been strong two consecutive months, consumers are looking resilient and the residential mortgage market has seen shoots of coming back as a big part of Canada's economy, he says. Although GDP has contracted two straight quarters in annualized terms, per-capita GDP is up quite significant, McKay says during an event in Toronto. Looking ahead, he expects the economy to be charged by strong defense spending, the likely construction of at least two pipelines, and investment in infrastructure and ports and the rail system. These coming catalysts are stoking a risk-on environment that is encouraging investment in Canada, he says. (robb.stewart@wsj.com)

(END) Dow Jones Newswires

June 16, 2026 14:15 ET (18:15 GMT)

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