Canada’s real gross domestic product rose 0.9% in the third quarter, following a 0.3% decline in the second quarter, Statistics Canada reported. Expressed at an annualized rate, real GDP rose 3.5% in the third quarter; in comparison, real GDP in the US rose at an annualized rate of 3.2% in the third quarter.

Exports of energy products, rebounding from a second-quarter decline, boosted growth. Growth in final domestic demand decelerated to 0.2%.

The Conference Board of Canada anticipated the economic rebound from the Alberta-wildfire induced contraction in the second quarter.

“The Canadian economy rebounded in the third quarter and this sets the stage for economic growth to accelerate from a roughly 1.3% pace in 2016 to close to 2.0% in 2017,” said Craig Alexander, senior VP and chief economist at The Conference Board of Canada.

However, Alexander noted some of the details in the report were discouraging.

“Business investment in machinery and equipment contracted last quarter and the rate of investment in recent years is below the pace of depreciation,” he said. “This is undermining Canada’s future growth potential.”