Canada Economy Sees Modest Growth in May

According to Statistics Canada, the country's economy experienced a modest growth of 0.3% in May, following solid gains in previous months. This expansion is on track for a strong rebound in the second quarter.

The mining, quarrying, oil and gas extraction sector was a major contributor to this growth, marking its second consecutive month as a leading industry. The sector's performance was bolstered by early completion or deferral of usual spring maintenance work.

Additionally, offices of real estate agents and brokers were busy in May, with the spring housing market picking up pace in Ontario and British Columbia after an extended cold snap. These factors combined to push growth above StatCan's initial estimate of 0.1%.

With a 0.6% increase in April and an expected 0.2% gain in June, Statistics Canada's advance estimate suggests real GDP will rise by 3.4% on an annualized basis in the second quarter. This marks a significant recovery from a mild contraction in the first three months of the year.