Canada’s GDP grows 0.6% in May over oil output rebound
29 Jul 2017 - 23:47
Ottawa: Canada’s gross domestic product (GDP) rose 0.6 percent in May on a rebound in crude oil production, taking it to the fastest 12-month pace since 2000, according to latest numbers released by Statistics Canada.
The monthly gain beat all 14 forecasts in a Bloomberg economist survey that had a median increase of 0.2 percent. Both the monthly and 12-month gains reflected a rebound in oil production after wildfires in Alberta last year and an explosion at a major oil site in March of this year.
Oil and gas extraction and mining accounted for more than half the monthly gain with non-conventional oil production rising 13 percent following two months of declines
Goods-producing industries grew 1.6 percent on the month, with manufacturing rising 1.1 percent
The economy grew 4.6 percent from a year earlier, the fastest pace since October 2000 during a technology boom. The monthly expansion for May was the seventh in a row, the longest such streak since 2010.
The lengthy run of growth mirrors gains in the job market and reflects a growing number of sectors driving the recovery. The May gain suggests the quarterly expansion will top a 3 percent annualised pace and may solidify speculation the Bank of Canada will raise interest rates again later this year. Among other sectors’ details, retailing grew 0.9 percent in May from April and wholesaling by 0.7 percent.
While the country’s real estate sector showed signs of slowing after Ontario Finance Minister Charles Sousa brought in a suite of measures including a foreign buyer tax on April 20 to cool the market in Toronto, Canada’s biggest city. Real estate and rental leasing fell 0.2 percent in May after five previous gains, and activity of real estate agents fell 6.3 percent.