July 31, 2014

GDP increased a seasonally-adjusted 0.4% over the previous month in May, which came in above April’s 0.1% expansion and met market expectations. According to Statistics Canada, most subcategories that compose the index grew in May, with manufacturing and wholesale trade recording the largest rates of expansion.



On an annual basis, GDP rose 2.3% in May, exceeding April’s 2.2% rise. The overall trend improved slightly as annual average growth ticked up from April’s 2.2% to 2.3% in May.

According to its July Monetary Policy Report, the Central Bank projects that the economy will grow 2.2% in 2014 and 2.5% in 2015. FocusEconomics Consensus Forecast panelists expect the economy to grow 2.2% in 2014, which is down 0.1 percentage points from last month’s estimate. For 2015, the panel expects the economy to expand 2.6%.