FX.co ★ Canadian Economy Set for a 0.1% Contraction in May

In May 2025, Canada's GDP saw a slight reduction of 0.1% compared to the previous month, according to preliminary estimates. This decline was driven by downturns in the mining, quarrying, and oil and gas extraction sectors, as well as in public administration and retail trade. However, these decreases were somewhat balanced by growth in the real estate and rental and leasing sectors. The GDP contraction follows a similar 0.1% drop in April 2025, after an increase of 0.2% in March. During this period, goods-producing industries experienced a 0.6% decline, primarily due to widespread decreases in manufacturing. In contrast, services-producing industries experienced a modest increase of 0.1%, with public administration, finance and insurance, and arts, entertainment, and recreation contributing positively, although this growth was offset by a notable 1.9% decline in wholesale trade.