Canada's Economy Sees Sharp Rebound in May

The Canadian economy grew by 0.3% in May, marking a sharp rebound from a mild contraction in the first quarter of the year.

Economists are attributing this growth to sectors such as oil and gas extraction, which saw an increase after being temporarily affected by early maintenance activity in Q1. The housing market is also experiencing a resurgence, with offices of real estate agents and brokers seeing a 5.1% jump in May.

BMO chief economist Doug Porter expects growth to moderate in the second half of the year due to high fuel costs and U.S. President Donald Trump's latest tariff threat against Canada. However, Porter notes that the economy is still 'grinding ahead' despite previous concerns about a technical recession.