StatCan says economy grew 0.3 per cent in May, estimates 1 per cent growth for second quarter
OTTAWA –
Statistics Canada say the Canadian economic system grew by 0.3 per cent May.
In its newest report on financial development, the federal company’s preliminary estimate suggests actual gross home product grew at an annualized fee of 1 per cent within the second quarter.
The May determine got here in barely decrease than was anticipated by Statistics Canada as mining and oil and fuel corporations lowered their operations in Alberta on the outset of the record-breaking wildfire season.
The vitality sector was down 2.1 per cent in May, the discharge exhibits.
“This was the sector’s first decline in five months and its largest since August 2020,” the company mentioned.
The modest GDP improve in May was pushed, partially, by a rebound within the public administration sector as most federal public servants on strike returned to work by the tip of April. However, 35,000 Canada Revenue Agency employees remained on strike for 3 days in May, which dampened the rebound.
That modest development is unlikely to carry, because the federal company’s preliminary estimate for June suggests the economic system contracted by 0.2 per cent.
The Bank of Canada’s key rate of interest is at 5 per cent, the very best it has been since 2001. The rate of interest spike is predicted to sluggish the economic system down, although it has usually carried out higher than anticipated this 12 months.
Statistics Canada says the estimated lower in June is especially owing to the wholesale commerce and manufacturing sectors.
Both sectors noticed development in May as provide chain points associated to semiconductor chips eased, however the downward pattern in June is predicted to “more than offset the increases recorded in May,” the company mentioned.
Despite the excessive rates of interest, the actual property sector is predicted to proceed to develop in June.
In May, residence resales in most of Canada’s largest markets led to an trade improve of seven.6 per cent.
This report by The Canadian Press was first printed July 28, 2023
