0.3% growth in May, plus an advance estimate of 0.2% growth in June, puts Canada on pace for strong 3.4% annualized GDP growth in Q2.
Despite the ongoing assault on the Canadian economy by the Trump Administration, Canada’s GDP growth exceeded estimates in May, rising 0.3%.
Growth was led by resource extraction, with the mining, quarrying, and oil and gas extraction sector expanding by 1%. Support activities for mining and oil and gas extraction rose 7.3%, the largest increase since March of 2024 and the seventh consecutive monthly increase. The oil sands extraction industry grew 1.6%.
The public sector grew 0.3%, with provincial and territorial public administration up 0.9%, the same rate of growth seen in the federal government. Though in the latter case, much of that growth coincides with census hiring, and federal public sector spending remains below the April 2025 peak.
Construction was up 0.8%, led by engineering and other construction activities, as well as residential building construction.
In a sign of resilience in the face of Trump’s tariffs on Canada, Canadian manufacturing rose 0.3%, with 1% growth in non-durable goods manufacturing and 5.9% growth in chemical manufacturing. Durable goods manufacturing declined 0.2%.
Transportation and warehousing grew 0.3%, led by a 2.7% growth in pipeline transportation.
With advance estimates showing 0.2% growth in June, Canada is on pace for 3.4% annualized growth in Q2, outpacing the 1.5% advanced estimate for the U.S., further evidence that our country is demonstrating economic resilience in the face of Trump’s tariffs.
Spencer Fernando
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