Canada’s GDP grew 0.3% in April, with rebound in some sectors

Canada’s economy grew 0.3 per cent in April, helped by strength in several industries, including wholesale trade, oil and gas extraction and manufacturing, Statistics Canada said.

The data matched expectations as analysts polled by Reuters had forecast 0.3 per cent GDP growth in the month, after zero growth in March.

Statistics Canada says the growth in April came as 15 of 20 sectors grew for the month. It is the fastest growth since January’s 0.5 per cent.

“After struggling to grow at all through the last three quarters of 2023, the Canadian economy is showing a bit more of a pulse so far this year,” said BMO economist Douglas Porter.

While growth is holding up slightly better than was expected in 2024, it remains “generally lacklustre,” he added.

The numbers probably won’t move the needle for the Bank of Canada, and Porter expects the next rate cut to come in September.

Wholesale trade was up two per cent in April, which more than offset a decrease in March, while mining and oil and gas extraction rose 1.8 per cent. The manufacturing sector grew by 0.4 per cent in April.

For May, Statistics Canada says early indications suggest real GDP rose 0.1 per cent that month as strength in manufacturing, real estate and rental and leasing and finance and insurance was partially offset by weakness in retail trade and wholesale trade.