MNI BRIEF: Canada Q1 GDP Grew 2.5% Annualized, March -0.1%

Canada's gross domestic product grew at a 2.5% annualized pace in the first quarter even as output contracted 0.1% in March, according to flash Statistics Canada estimates released Friday, keeping pressure on the central bank to consider another rate increase.

The pace was faster than the central bank's upgraded forecast of 2.3% earlier this month and another example of an economy resilient to higher interest rates and global tensions. Officials see growth slowing to a 1% pace in the second quarter and stalling out in the second half of the year, allowing some slack to open up.

GDP grew 0.1% in February according to StatsCan's official figure, following a 0.6% gain in January. The monthly expansion slowed on retail and wholesale declines with scientific services and the public sector gained.