Canadian Gross Domestic Product (GDP) increased by 0.5% in April, surpassing Statistics Canada's advance estimate of 0.4% and marking the strongest monthly gain since July 2025 [1]. The growth was primarily driven by goods-producing industries, notably mining, quarrying, and oil and gas extraction, while the services sector saw more moderate expansion [1].
According to Royal Bank of Canada (RBC) economist Abbey Xu, the stronger-than-expected April GDP reading suggests a firmer start to the second quarter, following a period of stalled growth over the winter [1]. Xu notes that the latest data introduces some upside risk to RBC's forecast of a 1.7% annualized quarter-on-quarter GDP increase for Q2, though she emphasizes that trade uncertainty and headwinds in the goods sector continue to limit the outlook for more robust growth [1].
Despite the positive April data, Xu maintains that the Canadian economy is expected to grow only at a modest pace in the coming months, with underlying economic conditions improving gradually on a per-person basis rather than indicating a significant shift in momentum [1]. The report underscores ongoing concerns about U.S. trade policy and its impact on the Canadian economic outlook [1].
CONCLUSION
Canada's April GDP data exceeded expectations, providing a firmer foundation for the second quarter and introducing some upside risk to growth forecasts. However, economists caution that ongoing trade uncertainties and sector-specific challenges are likely to keep overall economic growth modest in the near term.