Canada’s real gross domestic product grew by 0.5 per cent in April, marking a strong start to the second quarter of 2026 that was slightly higher than economists’ expectations. Gains were mainly driven by the mining, quarrying, and oil and gas extraction sectors, which grew by 2.9 per cent month-over-month in April, Statistics Canada said Tuesday. This is the largest growth rate for the sector since February 2024 and “more than offsets” March’s 1.4 per cent contraction, officials said. The manufacturing sector also rebounded in April, expanding by 0.6 per cent month-over-month following a 0.1 per cent contraction in March, driven by growth in durable-goods manufacturing industries. Weak economy, rising inflation presented a dilemma for Bank of Canada’s latest rate setting decision, deliberations showCanada could be ‘sideswiped’ if global imbalances continue to widen, Bank of Canada’s Tiff Macklem warns The construction industry also fuelled economic growth — expanding by 0.7 per cent month-over-month in April for the first time in five months. Transportation and warehousing, real estate and rental and leasing, finance and insurance and public administration also made gains. Economists largely expected the economy to grow in April, after it contracted unexpectedly by 0.1 per cent annually in the first quarter of 2026, putting Canada into a technical recession. StatCan’s flash estimates suggest the economy grew by 0.1 per cent in May on gains in the real estate sector and contractions in wholesale trade and agriculture, forestry, fishing and hunting. More to come… • Email: ptran@postmedia.com
