The Canadian economy has posted better-than-expected numbers in the second quarter of 2026, boosted by rising oil prices as well as a growing mining and quarrying industry.According to Stats Canada, the economy grew by 0.3% in May, higher than the anticipated growth of just 0.1%. This points to an annualized growth rate of 3.4%, showcasing a surprisingly bullish Canadian economy amid the ongoing trade war with the United States.Support activities for mining, oil, and gas extraction rose by 7.3% in May, the largest growth since March of 2024.There was higher-than-expected crude bitumen extraction in Alberta as well during Q2, with Stats Canada saying that this was likely due to the fact that "maintenance work that typically happens in the spring was either completed earlier in the year or deferred.""The oil and gas extraction subsector rose 0.7% in May due to higher oil sands extraction. The oil sands extraction industry (+1.6%) continued to grow, up for a second month in a row, led by higher crude bitumen extraction in Alberta.".Gains were also seen in other sectors such as construction, which saw growth of 0.8% in May, as well as manufacturing, which saw a smaller, but still upwards, growth rate of 0.3%.Although, on the whole, there was growth across most sectors, some sectors did see a decline, such as utilities, agriculture, forestry, fishing, and hunting.The quarterly report shows not only the surprising growth of the Canadian economy but also the importance that the oil and gas industry, as well as the price of oil, has on the Canadian economy.According to recent data, the oil and gas industry accounts for around 3.8% of Canada's overall GDP, but the overall energy sector accounts for over 9% of total GDP.The ongoing Iran War has also helped the industry, as oil shipments from the Middle East shrink, Canada is able to sell its oil at a higher price.With posturing from the federal government about potential future pipelines, it's likely this industry will continue to grow, especially as the world's energy market becomes increasingly volatile.
