Issue 16-148: Gross Domestic Product (GDP)
July 29, 2016
Canada’s economy shrunk in May, with real GDP dropping 0.6% (seasonally adjusted) from the previous month. This marked the most substantial contraction to the Canadian economy since March 2009. The goods sector continued to decline in May (-2.8%) as GDP in mining and oil and gas extraction plummeted 6.4%, and manufacturing (-2.4%), utilities (-1.8%) and construction (-0.7%) also slowed. The hefty decrease in mining and oil and gas extraction in May was a direct result of the Fort McMurray wildfire and evacuation. Excluding the decline in the non-conventional oil extraction industry, real GDP edged down just 0.1% in May.
Meanwhile, the service sector posted a modest 0.3% increase, boosted by robust activity in the wholesale trade (+1.0%) and finance and insurance (+0.6%) industries.
Data Source: Statistics Canada