The Toronto skyline in Canada

Canada GDP April 2019

Canada: Economic activity expands faster than expected in April

The economy expanded 0.3% month-on-month in April, down from March’s 0.5% increase but beating analysts’ expectations of a 0.1% expansion. According to Statistics Canada, 12 out of the 20 industrial sectors posted gains over the previous month, with the mining, quarrying and oil and gas extraction sector leading the pack thanks to an easing of oil production restrictions. On an annual basis, growth ticked up to 1.5% in April from 1.3% in the month prior.

Commenting on April’s print, Brian DePratto, a senior economist at TD Economics, noted:

“The consensus view is for the Federal Reserve to reduce its policy rate in short order, but today’s data highlights that the situation for the Bank of Canada is quite different, underscored by the bid up in the loonie following this report to levels last seen in October. Uncertainty may be elevated, but an upgraded growth forecast is likely to feature in next month’s MPR, leaving another ‘no change’ interest rate decision and a divergence between Canadian and U.S. monetary policy the most likely outcome”.

Growth should pick up notably from Q2 onwards relative to the first quarter of this year, as the energy sector gradually recovers. That being said, growth in 2019 is still expected to come down from 2018. Elevated household debt and debt servicing costs could drag on households’ demand for credit, while a moderating global growth outlook will likely hamper fixed investment.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest