Canada’s economy returned to growth in April, expanding 0.5 per cent after a weak start to 2026 and easing concerns over a sharper slowdown heading into the second quarter.
Statistics Canada said Tuesday real gross domestic product posted its fastest monthly growth since July 2025. The April increase also came in above the agency’s preliminary estimate of 0.4 per cent growth.
Oil And Gas Drive April GDP Growth
The rebound was led by oil and gas extraction, as synthetic crude oil production recovered from unscheduled maintenance, which had limited growth earlier in the year.
The April gain reached well beyond energy. Manufacturing, construction, transportation and warehousing, and the public sector all expanded during the month. Construction rose 0.7 per cent, marking its first increase in five months.
Real estate agents’ and brokers’ offices also saw their first growth since August 2025, helped by stronger home sales in the Greater Toronto Area.
May Growth Expected To Slow
Statistics Canada’s early estimate for May points to continued but slower growth, with real GDP expected to rise 0.1 per cent. The agency cited finance, insurance, real estate and leasing as key sources of strength.
The April rebound followed a March contraction, which pulled real GDP by expenditure into slightly negative territory for the first quarter of 2026. That raised concerns about a possible recession after two straight quarterly contractions, though many economists said the recession label was premature.
Energy Exports Surge Amid Middle East Conflict
In a separate release Tuesday, Statistics Canada said exports of refined petroleum products jumped 69.7 per cent year over year as the war in Iran pushed global prices higher.
Production of crude oil and equivalent products rose 4.2 per cent in April, marking the 11th consecutive year-over-year increase. Oilsands extraction made the largest contribution, while offshore production from Newfoundland and Labrador reached its highest level since March 2020.
Crude oil exports to the United States by pipeline increased 8.8 per cent annually. Exports to Asia and Europe rose 46.6 per cent, as the closure of the Strait of Hormuz and ongoing conflict in the Middle East disrupted crude oil supply from the region.
