The Canadian economy grew at an annualised rate of 2.4% in the first quarter, boosted by a rebound in exports and domestic consumption, the government statistical agency said today.
The gross domestic product (GDP) from January to March was lower than forecast.
This comes after the Canadian central bank warned last week that wildfires in the Alberta oil patch would shave as much as 1.25 percentage points off growth in the next quarter.
Analysts had predicted 2.8% growth.
On a monthly basis, growth fell 0.2% in March, following a slight decline of 0.1% recorded in February.
First quarter exports increased after a small decline at the end of 2015 despite price declines in the energy sector, according to Statistics Canada.
Canadians, meanwhile, spent more on car repairs, clothing and footwear, insurance and financial services, and less on electricity, natural gas and propane due to unseasonably warm weather.
New housing construction and resales continued at a brisk pace. However, investment in engineering structures fell due to weakened activity in the oil and gas sector, which was affected by lower oil prices.
Business outlays on machinery and equipment fell for a fifth consecutive quarter.
And spending on software, research and development fell, while mineral exploration investment edged down, following larger declines throughout 2015.
The Bank of Canada in April forecast growth would slow in the second quarter to 1.4%, however, most analysts now expect the economy will contract.
