RoydadNaft –  Canada’s GDP grew by 0.3 per cent in April, according to Statistics Canada.

The agency said 15 out of 20 sectors it monitored all grew, but wholesale trade, mining, quarrying and oil and gas contributed the most.

Retail trade, led by grocers and gas stations, also rebounded in April following declines in previous months.

The construction sector saw a 0.4 per cent decline, with decreased activity in the building of new single- and multi-family homes partly to blame.

That comes amid hefty promises from the governing Liberals – as well as various provincial governments – that housing will be made more affordable through a massive building effort.

According to its preliminary estimate for May, StatCan said it also appears the overall economy increased by only 0.1 per cent last month.

That figure will be updated on July 31, the agency said.

Earlier this week, StatCan said it estimated the inflation rate in Canada last month was 2.9 per cent, slightly higher than it was in May.

That came after the Bank of Canada announced its first interest rate cut (from five per cent to 4.75 per cent) in more than four years earlier this month.

According to a note written by RBC’s Claire Fan, today’s GDP figures show “widely based gains in output” in April but “with that momentum quickly fading in May.”

“And the economy as it stands is still in excess supply, leaving it room to grow without adding to inflation pressures,” she added.

“That’s why we think the BoC will carry on with cutting interest rates, with 100 basis points of cuts to the overnight rate (including the 25 already done in June) expected this year. Even then, interest rates will still remain at levels high enough to restrict growth in the economy for some time, and we don’t expect per-capita GDP will return to positive territory until Q4 this year.”