Markets 
The Canadian economy was back in growth mode to start the second quarter, rebounding from a mild contraction in the first three months of 2026.
Statistics Canada said Tuesday that real gross domestic product rose 0.5 per cent in April, the fastest growth rate for the economy since July 2025. The result topped StatCan’s early estimate for 0.4 per cent growth in the month.
Oil and gas extraction surged in April helped by higher synthetic crude oil production, which rebounded after unscheduled maintenance that tempered growth to start the year, the agency said.
But growth was also widespread across industries in April. The manufacturing, construction and transportation and warehousing industries all posted gains, as did the public sector. A 0.7 per cent gain in the construction industry was the sector’s first gain in five months.
StatCan said real estate agents’ and brokers’ offices were busier in April, marking the subsector’s first growth since August 2025 on the back of stronger home sales in the Greater Toronto Area.
StatCan’s early estimates have growth moderating but continuing with an increase of 0.1 per cent in May thanks to growth in finance, insurance, real estate and leasing.
An economic contraction in March dragged real GDP by expenditure into barely negative territory for the first quarter of the year. That sparked rumblings of a recession after two consecutive quarterly contractions, though most economists argued that label was premature.
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A separate release from StatCan on Tuesday detailing energy statistics in the economy showed exports of refined petroleum surged 69.7 per cent year over year as the war in Iran pushed prices higher globally.
Production of crude oil and equivalents rose 4.2 per cent in April, which StatCan said was the 11th consecutive month of year-over-year increases.
Oilsands extraction contributed the most to the stronger activity in April, though offshore production from Newfoundland and Labrador also hit its highest levels since March 2020.
Crude oil exports to the United States by pipeline rose 8.8 per cent annually in April, while exports to Asia and Europe jumped 46.6 per cent. The agency pointed to the closure of the Strait of Hormuz and the ongoing conflict in the Middle East as hampering crude oil supply from the region.
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