Canadian Economy Grew by 0.3 Percent in May: StatCan

A transport truck carries a cargo container to be loaded on the Hapag-Lloyd container ship Frankfurt Express at the DP World Centerm terminal at port, in Vancouver, on Aug. 3, 2025. The Canadian Press/Darryl Dyck

Canada’s GDP grew for a second month in a row in May, increasing by 0.3 percent, according to Statistics Canada.

Thirteen of the country’s 20 industrial sectors—including construction, finance, and manufacturing—grew in May, the agency said in a July 31 news release.

Canada’s mining, oil, and gas industries led the economy’s growth and contributed 0.1 percent to the monthly GDP increase. Support for those activities rose by 7.3 percent in May, which was the seventh consecutive month of expansion.

Canada’s oil sands industry grew by 1.6 percent, led by higher crude bitumen extraction in Alberta, while the mining and quarrying industries contracted by 0.7 percent due to lower coal and non-metallic mineral mining.

Transportation and warehousing expanded 0.3 percent in May, with higher natural gas exports contributing to a 3.8 percent increase in pipeline transportation. Rail transportation grew by 0.7 percent due to increased movement of grain and wheat.

The country’s manufacturing sector also grew 0.3 percent in May, with a 5.9 percent uptick in chemical manufacturing increasing the metric. While non-durable goods expanded by 1 percent, durable goods manufacturing contracted by 0.2 percent due to a decline in machinery, electrical equipment, and appliance manufacturing.

Finance and insurance also rose 0.3 percent in May, with increases in finance, insurance, and banking activities reflecting “heightened activities in the equity and bond markets amid the uncertainty associated with the conflict in the Persian Gulf.”

Construction also increased by 0.8 percent in May, while real estate and rentals increased by 0.4 percent, and the public sector grew by 0.3 percent.

StatCan projected that Canada’s real GDP increased by 0.2 percent in June, with growth in wholesale, finance and insurance being partially offset by decreases in agriculture, forestry, fishing and hunting. The statistics agency also projected that the country’s GDP increased by 0.8 percent in the second quarter of 2026.

The May report comes after Canada dipped into a technical recession in the first quarter of the year, as the economy fell by 1 percent in the fourth quarter of 2025 and by 0.1 percent in the first quarter of 2026 on an annualized basis. The technical definition of a recession is two consecutive quarters of GDP contraction.

The C.D. Howe Institute, widely seen as an authority on recessions in Canada, said on June 5 that it was too soon to conclude the country had entered a recession. The institute said a quarterly decline in economic activity must be accompanied by weakness in surrounding quarters to demonstrate a general economic contraction, and that GDP figures are often revised later on.