Alberta oil production helps drive Canadian economy back into growth in April

CALGARY — Canada’s economy returned to growth in April, powered by a sharp rebound in oil and gas production and broad-based gains across multiple sectors after a slight contraction in the first quarter of 2026.According to a report from The Canadian Press, Statistics Canada said Tuesday that real gross domestic product (GDP) increased 0.5% in April, marking the strongest monthly growth since July 2025 and surpassing the agency’s preliminary estimate of 0.4%.The increase was led in part by a surge in oil and gas extraction, as higher synthetic crude production recovered following unscheduled maintenance disruptions that weighed on output earlier in the year.Growth was also recorded across a wide range of industries. Manufacturing, construction, transportation and warehousing all posted gains, while public sector activity also increased.The construction sector expanded by 0.7% in April, its first monthly increase in five months.Statistics Canada also reported stronger activity among real estate agents and brokers, with the sub-sector posting its first increase since August 2025 as home sales improved in the Greater Toronto Area..Alberta government prioritizes economic growth and protecting residents in Spring 2026 session .Early estimates suggest growth continued in May, though at a slower pace. Statistics Canada projected GDP growth of 0.1% for the month, supported by gains in finance, insurance, real estate and leasing.Canada’s economy narrowly contracted in the first quarter of 2026 after a weak March, prompting some discussion about a potential recession following two consecutive quarters of decline. However, many economists argued it was too early to classify the slowdown as a recession.Separate energy data released Tuesday showed Canada’s oil sector continued to strengthen amid heightened geopolitical tensions in the Middle East.Exports of refined petroleum products surged 69.7% compared with April 2025 as the conflict involving Iran contributed to higher global energy prices.Crude oil and equivalent production increased 4.2% year over year in April, marking the 11th consecutive month of annual growth.Statistics Canada said oilsands production accounted for the largest share of the increase, while offshore production in Newfoundland and Labrador reached its highest level since March 2020.Canadian crude exports to the United States by pipeline rose 8.8% from a year earlier, while shipments to Asia and Europe climbed 46.6%.The agency said disruptions tied to the closure of the Strait of Hormuz and ongoing conflict in the Middle East constrained regional oil supplies, helping boost demand for Canadian crude in overseas markets.

Alberta oil production helps drive Canadian economy back into growth in April

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