The Canadian economy likely expanded 0.4% month-over-month in April 2026, the most since January 2025, recovering from a 0.1% drop in March, according to preliminary estimates. In March, the GDP shrank for the first time in five months, mainly driven by a 0.8% contraction in goods-producing industries. Oil and gas extraction decreased 2% and oil and gas extraction (except oil sands) was down 2.3%, the largest drop in over a year, as lower crude petroleum extraction in the Western provinces and Atlantic Canada contributed to the decline. Lower natural gas extraction further contributed. In addition, the construction sector was down 0.6% and retail trade contracted 0.6% while wholesale trade rose 1.8%, to mark the largest back-to-back monthly growth rates in over four years.