Canada's economy expands 0.3% in May

By Ovunc Kutlu

ISTANBUL (AA) - Canada's economy expanded 0.3% in May, according to Statistics Canada figures released Friday.

While the figure came in line with market expectations, it followed a 0.1% increase recorded in April.

Canada's economy expanded 0.8% in the first quarter of 2023, compared to the fourth quarter of 2022.

The North American economy stalled in the fourth quarter of 2022 that ended five consecutive quarters of growth.

"Services-producing industries were up 0.5%, while goods-producing industries partially offset the increase with a 0.3% decline in May," the agency said in a statement. "Overall, 12 of 20 industrial sectors posted increases."

A rebound in wholesale and public administration helped boost GDP, it said, adding that "mining, quarrying and oil and gas extraction was the biggest detractor to growth in May, as many companies, specifically in Alberta, reduced operations as a result of forest fires in the province."

Statistics Canada said energy sector was severely impacted by wildfires in May and contracted by 2.1%, which was the industry's first decline in five months and its largest since August 2020.

"Following four months of growth, the oil and gas extraction subsector fell 3.6% in May, as all components contributed to the decline. Oil and gas extraction (except oil sands) dropped 6.6% as a result of the forest fires in Alberta," it noted.