Canada’s GDP grows 0.3% in April

Ottawa, July 1 (SocialNews.XYZ) Canada's real gross domestic product (GDP) growth slowed to 0.3 per cent in April with an advance estimate of a 0.2 per cent decline in May, according to official figures.

Statistics Canada said on Thursday that the small GDP growth in April, following a 0.7 per cent expansion in March, was led by the mining, quarrying and oil and gas extraction sector and client-facing industries, reports Xinhua news agency.

The mining, quarrying and oil and gas extraction sector expanded 3.3 per cent in April, the largest monthly growth rate since December 2020.

Oil and gas extraction rose 3.9 per cent, a third consecutive monthly increase and the largest since September 2020, buoyed by higher activity across the board.

Oil sands extraction increased 5.6 per cent in April, the largest monthly increase since September 2020.

High levels of synthetic oil production and crude bitumen extraction in Alberta contributed the most to the growth.

Oil and gas extraction (except oil sands) grew 1.6 per cent, as both crude petroleum and natural gas extraction were up. Support activities for mining, and oil and gas extraction were also up 6.2 per cent.

Mining and quarrying (except oil and gas) edged up 0.2 per cent in April, as a result of increases in non-metallic mineral mining and quarrying, and in coal mining.

Non-metallic mineral mining and quarrying increased 3.6 per cent, fully offsetting a 2.9 per cent decline in March, as potash mining led the growth, Statistics Canada said.

Market analysts expected the GDP growth to slow more significantly as high inflation and rising borrowing costs hurting households' spending power.

Source: IANS