Indicators

Canadian Growth Tops Forecasts, Boosting Rate-Hike Odds

  • Gross domestic product expands at 3.1% annualized pace
  • Bank of Canada may be pulled from sidelines next week
A pulp and paper mill in Crofton, British Columbia.Photographer: James MacDonald/Bloomberg

The Canadian economy started off strong in the second quarter, extending a streak of better-than-expected growth and boosting the likelihood of another Bank of Canada rate hike.

Preliminary data suggest gross domestic product rose 0.2% in April, Statistics Canada reported Wednesday in Ottawa, led by mining, oil and gas, transportation and real estate. That followed a flat reading in the previous month, exceeding expectations for a 0.1% contraction in a Bloomberg survey of economists.