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GDP Gains, as Expected

Our economy grew by 0.2%in April, a mite slower than March's level as the service sector expanded while goods-producing industries were flat.

Figures released Friday morning by Statistics Canada showedthat oil and gas extraction shrank by 0.8 per cent during the month, but much of that was tied to a fire and subsequent shutdown of the Syncrude oilsands facility.

The fire in March knocked off 350,000 barrels per day worth of production all the way into May.

The 0.2 per cent expansion overall was in line with what economists were expecting.

Manufacturing also declined, by 0.9 per cent, but just about every other major industry expanded.

The arts and entertainment sector boomed, expanding by 7% in the month, experts noting the contribution made by five Canadian-based NHL teams making the playoffs this spring.

April's figure means that Canada's economy has expanded by 3.3% in the past year, commentators calling that the best growth among all major industrialized economies over those 12 months.

April's GDP numbers come amid increased speculation that the Bank of Canada could raise its key interest rate target as soon as July.