The Financial Post reports in its Thursday edition that Canada's gross domestic product likely rebounded slightly in March after contracting more than expected in February. The Post's Gigi Suhanic writes that a flash estimate for March released by Statistics Canada on Wednesday said the economy grew 0.1 per cent month-over-month, but growth contracted 0.2 per cent in February compared with economists' estimate for no change. Statscan said poor weather in February contributed to some of the pullback in February, but economists said Canada's economy has been slowing since posting monthly growth of 0.4 per cent in January. The flash estimate for growth in March was "mildly encouraging," though Statistics Canada "badly overestimated" its flash estimate for February when it predicted no growth, BMO economist Douglas Porter said in a note. BMO is estimating first-quarter annualized growth of 1.5 per cent. "The real drama now begins, with the tariffs much more of an issue in Q2," he said, adding that "in a bit of a warning for what lies ahead, manufacturing and wholesale trade were weak [in March]." The bank expects second-quarter annualized GDP to contract 2.5 per cent, which Mr. Porter said might be "too pessimistic."
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