Canada once again exceeds expectations with 0.6% GDP growth

Canada’s economy enjoyed its seventh monthly gain in a row in May, once again exceeding analysts' predictions.

Data from Statistics Canada has revealed a 0.6% expansion rate on its GDP, 0.4% higher than the projected figure from leading economists of 0.2%. 

Oil and gas extraction led the way with 7.6% growth, part of an overall figure of 4.6% for the mining, quarrying and oil and gas extraction sector compared to the same month in 2016.

In total, GDP grew in 14 of the 20 key industrial sectors measured by Statistics Canada. In the year period leading up to May, growth was at 4.6% - the largest 12-month figure since 2000.

“There appears to be no holding back the Canadian economy, at least for now,” said TD Bank economist Brian DePratto told CBC. 

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“The robustness of the Canadian economy will likely allow the Bank of Canada to carry through with another interest rate increase this fall, completing the removal of the 2015 emergency stimulus.”

According to projections from the IMF earlier this month, Canada’s economy will grow more than that of any other G7 country in the rest of 2017.

Improving its original forecast from April that predicted a 1.9% growth in the country’s Gross Domestic Product (GDP), the IMF is now anticipating a 2.5% rise by the end of the year.

The projection compares favourably to the United States, which was second in the ranking of G7 nations ahead of Germany and the United Kingdom.

Canada’s strong economic performance has been put down to its growing jobs market and oil price stabilisation.