This second estimate is much better than the first (+2.6 per cent), is higher than the expectations of analysts (2.7 per cent).
Investment by businesses also improved to growth of 6.9 percent, reflecting higher spending on structures, equipment and intellectual property.
That's the strongest growth since the first quarter of 2015.
The budget the president released in May projects GDP growth will rise to 3 percent over the next four years and remain at that level for the rest of the decade.
Canada's economy grew at its best pace in almost six years in the second quarter amid robust consumer spending and energy exports, raising expectations another interest rate hike could come as early as next week.
Trump has alienated members of his own party, who face bruising battles in Congress next month over borrowing authority, the budget and reconstruction aid for areas battered by Hurricane Harvey.
Indeed, families appeared to have room to both spend and save more, with the household savings rate rising a notch, to 4.6 per cent from 4.3 per cent in the first quarter.
A consensus of economists had predicted Canada to deliver a second-straight growth reading of 3.7 per cent, according to Thomson Reuters.
The U.S. dollar softened against a basket of currencies following lackluster U.S. economic data that failed to boost expectations for another Federal Reserve rate increase this year. GDP has averaged annual growth rates of just 2.2 percent in this recovery, which is now the third longest in USA history.
Hitting the 3% mark for the first time in more than two years was notable because President Donald Trump has said he wants to lift annual economic growth above 3% in a sustained fashion by rolling back regulations, overhauling the tax code and enacting other policy changes. "That's some numbers. And I happen to be one that thinks we can go much higher than three percent". This result actually subtracted more than half a percentage point from average real GDP growth in the first half of the year. It was the goods-producing side of the economy that led the way again, expanding 0.5 percent on strong gains in construction.
Canadian government bond prices were mostly lower across the yield curve, with the two-year price down 7 Canadian cents to yield 1.275 per cent and the 10-year falling 13 Canadian cents to yield 1.851 per cent.
"Overall the US economy and labor market remain in good shape, and will easily withstand any temporary drag from Harvey", Gus Faucher, chief economist at PNC Financial, wrote in a report on Wednesday.