MNI DATA IMPACT: Canada April GDP +0.3%, Beats Forecasts on Oil>

By Greg Quinn

     OTTAWA (MNI) - Canada's economy grew 0.3% in April, a 

faster-than-expected gain led by a rebound in crude oil production and 

wholesale sales. 

     The expansion was faster than the 0.2% median estimate in an 

MNI economist survey. Oil and gas extraction rose 5.5%, the most in 

three years, as Alberta's provincial government eased earlier production 

cuts put in place because of an earlier crash in prices.

     Wholesaling was the other major contributor to April growth with a 

1.4% increase led by machinery and equipment. Production rose in about 

half of the major industries in Statistics Canada's report Friday.

     The April GDP report opens the second quarter on a positive note 

and suggests the economy grew at an annualized pace of around 2%, faster 

than the Bank of Canada's 1.3% projection. That may help Governor 

Stephen Poloz balance off the risks of a deeper global trade war and 

keep a neutral tone on interest rates at his July 10 decision, as other 

central banks talk more about adding fresh stimulus.

     Statistics Canada also confirmed the economy grew at a 0.5% pace in 

March. Today's report marks the first back-to-back gain in GDP since a 

soft patch developed late last year as oil prices tumbled. 

--MNI Ottawa Bureau; +1-613-314-9647; greg.quinn@marketnews.com 

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