Canada’s economy grew 0.3% in May, coming in above expectations
Canada's economy grew by 0.3% in May, exceeding expectations and putting the country on track for over 3% annualized growth in the second quarter. However, analysts warn that new U.S. tariffs could threaten this recovery in the coming months.
Why it matters
The data suggests a rebound from a technical recession, but highlights the vulnerability of the Canadian economy to protectionist trade policies from the United States.
A container is unloaded in Delta, B.C., on Thursday. Statistics Canada's advance estimate puts the economy on track for annualized growth above 3 per cent in the second quarter. DARRYL DYCK/The Canadian Press
The Canadian economy extended its spring rebound with stronger-than-expected growth in May, but a new wave of tariffs could temper the recovery anticipated in the latter half of the year.
Real gross domestic product jumped by 0.3 per cent in May – coming in above forecasts from economists – and an advanced estimate for June showed a further 0.2-per-cent gain, Statistics Canada reported on Friday.
The increase puts the economy on track for annualized growth above 3 per cent in the second quarter, higher than the Bank of Canada’s recent 2.5-per-cent projection. It is also well north of the United States’ 1.5-per-cent expansion for the same quarter.
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