(CTN News) – Statistics Canada reported that the Canadian economy expanded by 0.3% in April, with mining, wholesale trade, the oil and gas industry, and manufacturing leading the way.
On an annual basis, the GDP expanded by 1.1% compared to April 2023.
“After struggling to grow at all in the last three quarters of 2023, the Canadian economy is showing a little more of a pulse so far this year,” Bank of Montreal chief economist Douglas Porter wrote in a report on Friday. “On balance, growth is holding up little better than largely projected in 2024, although it remains relatively weak.
Manufacturing increased by 0.4% after falling 0.6% in the first quarter of this year. Retail trade also rebounded, rising 0.5% after two consecutive months of contraction.
The oil and gas sector, which expanded by 1.2% in April, may have received a lift ahead of the Trans Mountain pipeline expansion on May 1.
Construction and real estate activity have plummeted. Residential building development fell by 2.3%, the highest drop since May of last year.
Canada Economy Expands by 1.7% in Q1
The Canadian economy increased by 1.7% annually in the first quarter, below the Bank of Canada’s prediction of 2.8%.
In June, the central bank dropped interest rates for the first time in four years, lowering the overnight rate from 5% to 4.75 percent due to lower-than-expected GDP growth and declining core inflation. However, data released after the decision showed inflation climbing significantly in May to 2.9% from 2.7% in April, raising the question of whether another cut will occur in July.