Canada’s economy is expected to contract by 0.2%, Statistics Canada claimed on Friday. This comes after Statscan revealed that Canada’s Gross Domestic Product (GDP) rose by 0.3% in May.
This figure fell in line with analysts’ previous estimates of a 0.3% rise in May. For the second quarter, the Bank of Canada forecast a 1.5% annualized GDP rise. Should June’s GDP fall by 0.2%, however, this would result in a lower 1% year-on-year rise for the quarter.
Statscan observed that a rise in manufacturing and real estate sectors as well as a recovery in wholesale and public administration helped to drive economic growth in May. Manufacturing posted its highest rise since October 2021.
These increases helped to offset sustained losses in Canada’s energy sector, with raging wildfires in the main oil-producing province of Alberta pushing the sector lower.