Canada’s GDP Shrinks in April — Is a Rate Cut Coming?

April’s GDP came in weaker than expected, contracting 0.1%, with broad-based declines across manufacturing and wholesale trade. The biggest drag? A sharp drop in manufacturing—especially in transportation equipment.

On BNN Bloomberg’s The Street, Richard Forbes and Gavin Graham break it down:
👉 May’s early data suggests another 0.1% contraction
👉 Q2 GDP could turn negative
👉 Markets are now eyeing the Bank of Canada’s July 30 rate decision

Despite the weakness in goods-producing sectors, pockets of resilience remain—like finance, public services, and even sports-related activity. But as trade headwinds persist and consumer momentum fades, the case for easing is building.

🎯 Worth watching: will the BoC stay patient, or move to support a soft landing?

🔗https://www.bnnbloomberg.ca/video/shows/the-street/2025/06/27/april-gdp-falls-more-than-expected/