Canada's Economy Grew 0.3% in May, Pointing to Solid Q2 Rebound

May GDP tops forecasts

Statistics Canada reported that real GDP by industry grew 0.3% in May 2026, marking a second consecutive monthly increase and coming in well above the agency's initial 0.1% estimate for the month.

• Goods-producing industries expanded 0.6%, and services-producing industries also grew - 13 of 20 industrial sectors contributed to the gain - Mining, quarrying, and oil and gas extraction led growth for a second straight month

Second quarter set for a rebound

StatCan's advance estimate points to real GDP rising at an annualized 3.4% pace in the second quarter of 2026, a sharp turnaround from a mild contraction in the first quarter. Back-to-back monthly gains in the goods and services sectors suggest the economy regained momentum heading into summer, though the advance quarterly figure is preliminary and could be revised when final data are released.

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