Canada’s gross domestic product (GDP) grew 2.9% year on year in the third quarter, far exceeding analysts’ expectations, the Canadian Institute of Statistics announced Tuesday.

The fifth consecutive quarterly increase in GDP was mainly driven by growth in crude oil and bitumen exports (+2.1%) and a high accumulation of inventories for the second consecutive quarter.

Inventories in the manufacturing, wholesale and retail sectors rose to “a record increase in inventory,” according to Statistique Canada.

However, this increase was tempered by a decline in residential investment for the second consecutive quarter and by a fall in household spending.

“The strong growth in the third quarter doesn’t really reflect the underlying strength of the Canadian economy,” said Royce Mendes, a financial analyst at Desjardins Bank, noting that “much of the increase stems from volatile and external demand categories.”

Originally forecast at 3.9% for 2022, Canada’s GDP growth is expected to contract to 0.7% in 2023, the government estimated in its latest budget update.