Canada’s economic growth in May reached 0.3%, extending the country’s growth streak for a second consecutive month, positioning the economy for a robust second quarter, as per Statistics Canada. This growth surpassed the agency’s initial projection of 0.1% for the month. Notably, 13 out of 20 industrial sectors, including construction, manufacturing, finance, insurance, and the public sector, contributed to the month’s advancements.
The mining, quarrying, oil, and gas extraction sector experienced a 1% increase in May, marking its second consecutive month of growth. This growth was driven by the completion of maintenance work ahead of schedule or its deferral, facilitating increased extraction. Additionally, the transportation and warehousing sector saw growth, with pipelines facilitating higher natural gas exports.
Real estate agent offices saw heightened activity in home sales, boosting the real estate, rental, and leasing sector significantly. An early estimate for June suggests a 0.2% expansion in that month, further solidifying the economy’s growth trajectory. With a slight upward revision of April’s GDP growth to 0.6%, the Canadian economy is set for a strong second quarter.
The advance estimate by Statistics Canada indicates a 3.4% annualized real GDP growth in the second quarter, rebounding sharply from a slight contraction in the first quarter. The concerns of a technical recession following two consecutive quarters of annualized GDP decline earlier in 2026 seem to have been overblown, according to BMO chief economist Doug Porter.
Despite the positive numbers, CIBC economist Andrew Grantham advises caution, attributing the second-quarter GDP boost to one-off factors like advanced oil maintenance and favorable impacts from events like the FIFA World Cup. Grantham foresees slower growth in the upcoming months, projecting a gradual reduction in economic slack and anticipating the Bank of Canada to maintain interest rates throughout the year.