There's Some Growth Below The GDP Surface in Canada, Says BMO

07:58 AM EDT, 04/01/2026 (MT Newswires) -- The Canadian economy has grown just 0.6% in the past year, but there are some noteworthy supports below the surface that are consistent with the broader narrative, said Bank of Montreal.

It noted real defense service output is up almost 5% from a year ago, as Canada pushes up its spending target. Infrastructure, as measured by engineering and other construction, for example, highways, utilities, etc, is up almost 6% from a year ago. That's consistent with the federal and provincial governments rolling out more infrastructure investment, said BMO.

Also, data centers have contributed to a more than 7% increase in output in the related sector as a few major projects are underway across Canada, noted the bank.

BMO said this isn't enough to drive above-potential growth by any means, partly because some heavyweight sectors, such as manufacturing, are contracting outright. However, it does help keep the economy grinding ahead, it added.

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