Canada's economy grew 0.2 per cent in May, Statistics Canada said on Wednesday, a tick higher than what economists were expecting. The manufacturing sector drove growth in May for the second consecutive month, Statistics Canada said, while the mining, quarrying and oil and gas extracting sector contracted by 0.6 per cent. However, the retail sector was the largest drag on economic growth in May. It has also forecast that annualized GDP growth in the second quarter will come out to 2.2 per cent, well beyond the 1.5 per cent growth estimated by the Bank of Canada during its July interest rate meeting. DiCapua had written in an early morning note that high interest rates were pinching the economy, particularly impacting the retail sector.

Source: CBC News August 01, 2024 03:52 UTC