Breaking: Canadian economy expands by 4.5% in May vs. 3.5% expected

Eren Sengezer FXStreet

The real Gross Domestic Product (GDP) in Canada expanded by 4.5% on a monthly basis in May, the data published by Statistics Canada showed on Friday.

This reading followed April's contraction of 11.7% (revised from 11.6%) and came in slightly better than the market expectation for a growth of 3.5%.

"In May, provinces and territories started reopening sectors of their economies to varying degrees," Statistics Canada noted in its press release. "While May's gains offset some of the March and April declines, economic activity remained 15% below February's pre-pandemic level."

Market reaction

This data doesn't seem to be having a significant impact on the CAD's performance against its rivals. As of writing, the USD/CAD pair was virtually unchanged on the day at 1.3424.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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