Economy grew 4.5% in May as coronavirus lockdowns eased: Statistics Canada

Statistics Canada says the economy grew by 4.5 per cent in May as businesses began to reopen after severe lockdowns of March and April.

The average economist estimate was for a 3.5 per cent increase in gross domestic product for May, according to financial data firm Refinitiv.

The national data agency says rebounds in May were seen across multiple industries with the easing of COVID-19 restrictions, including retail trade that registered a 16.4 per cent bump to mark its largest monthly increase since comparable readings began in 1961.

In a flash estimate for June, the agency says the economy continued to grow at a rate of five per cent.

2:00 Feds pledge funds to help provinces kickstart their economies amid ongoing pandemic

Despite the two months of growth after two months of negative readings, Statistics Canada’s preliminary estimate is that economic output contracted by 12 per cent in the second quarter.

The June and second-quarter figures will be finalized late next month.