Canada’s real gross domestic product grew by 0.3 per cent in May, continuing a strong start to the second quarter of 2026.

Gains were mainly driven by the mining, quarrying, and oil and gas extraction sectors, which grew by one per cent month-over-month in May, Statistics Canada said. This is the second consecutive month where these sectors led economic growth.

Manufacturing also saw growth, expanded by 0.3 per cent, driven by non-durable goods manufacturing industries.

Construction activity also grew for the second consecutive month, expanding by 0.8 per cent in May.

Economists largely expected the Canadian economy to rebound in the second quarter of 2026, after it contracted by 0.1 per cent on an annualized basis in the first quarter.

The Bank of Canada’s latest Monetary Policy Report said the economy is showing signs of improvement after a year of weakness, and officials forecast 2.5 per cent growth in the second quarter of 2026.

  • Bank of Canada expects economic rebound, decelerating inflation rate but risks remain
  • Bank of Canada survey tags Trump’s trade tensions as top risk to economy

Statistic Canada’s flash estimates suggest the economy grew by 0.2 per cent in June led by increases in wholesale and retail trade as well as finance and insurance. Including the June estimate, officials said the economy likely expanded by 0.8 per cent in the second quarter and is on track for an annualized growth rate of 3.4 per cent.

More to come …

• Email: ptran@postmedia.com