Canada Surpasses Expectations with 0.3% GDP Growth in May
Canada's economy grew by 0.3% in May, exceeding expectations and putting it on track for annualized growth above 3% in the second quarter.
The increase was broad-based across 13 of the 20 industrial sectors, with resources, construction, and real estate leading the way.
The energy industry saw a significant boost from elevated oil prices, with Western Canada Select averaging US$83 per barrel in May. However, the sector's growth could be limited by capacity constraints, particularly with the Trans Mountain system operating at full capacity.
Despite this positive data, trade uncertainty and higher energy prices remain concerns for the Canadian economy. The Trump administration's new tariffs on a range of industries are set to take effect in under three weeks, which could temper the recovery anticipated in the latter half of the year.