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Canada’s economy grew by 0.3 per cent in April, mainly driven by mining, wholesale trade, the oil and gas industry and manufacturing, Statistics Canada said Friday.

On an annual basis, the economy grew by 1.1 per cent, compared to April of last year.

Manufacturing grew by 0.4 per cent after retracting 0.6 per cent in the first quarter of this year. Retail trade also improved, increasing 0.5 per cent following two consecutive months of decline.

Construction and the real estate activity, however, decreased. Residential building construction was down by 2.3 per cent, its largest decline since May of last year.

The Canadian economy grew by an annual rate of 1.7 per cent during the first quarter of 2024, less than the Bank of Canada‘s forecast of 2.8 per cent.

The central bank made its first interest rate cut in four years in June, bringing the overnight rate down from five per cent to 4.75 per cent. Inflation data released after the decision for the month of May saw inflation increase slightly, calling into question whether the Bank of Canada can cut again in July.

But speaking to reporters on Monday, Bank of Canada Governor Tiff Macklem said the Canadian economy appears to be headed towards a “soft landing” and is confident that inflation will return to its 2 per cent target and that growth will continue to rebound from last year.

Preliminary estimates by Statistics Canada puts growth in May at 0.1 per cent. This number may change when official numbers are released in July.

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