Canada: Real GDP contracts by 0.3% in May as expected

Canadian economy continued to contract at a modest pave in May.
USD/CAD stays in the negative territory below 1.2450.

Eren Sengezer FXStreet

Canada's Real Gross Domestic Product (GDP) contracted at a monthly rate of 0.3% in May, the data published by Statistics Canada showed on Friday. This print followed April's decline of 0.5% and came in line with the market expectation.

"Preliminary information indicates an approximate 0.7% increase in real GDP for June," the publication further read. "Total economic activity was approximately 2% below February 2020's pre-pandemic level."

Market reaction

The USD/CAD pair largely ignored this report and was last seen losing 0.08% on a daily basis at 1.2433.

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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