Statistics Canada reported today, Wednesday, that the Canadian economy grew by 0.2 percent in May, driven by expansion in manufacturing and the public sector.

The federal agency's GDP report indicated that retail and wholesale trade, as well as the oil and gas sector, impacted growth.

However, it highlights the contribution of the expansion of the Trans Mountain pipeline to economic growth that month.

The crude oil and transportation industry through other pipelines rose by 1.5 percent, partly reflecting the start of the expanded Trans Mountain pipeline as the first oil tankers carrying oil from western Canada left the Port of Vancouver in late May, the report stated.

The federal agency estimates that growth was slightly moderate in June to 0.1 percent, as growth in construction, real estate, leasing, and finance and insurance was partially offset by declines in manufacturing and wholesale trade.

For the second quarter, Statistics Canada expects real GDP to grow at an annual rate of 2.2 percent.

The latest economic growth figures come one week after the Bank of Canada cut the key interest rate for the second consecutive time.

Bank of Canada Governor Tiff Macklem stated that the central bank's decision was partly driven by weak economic conditions.

While the economy has not slipped into recession, growth has been modest, particularly when considering population growth.

The labor market has also felt the weight of high borrowing costs, with graduates and newcomers especially affected by declining job opportunities.

The unemployment rate has steadily increased over the past year, reaching 6.4% in June.

The interest rate cuts made by the Bank of Canada are expected to relieve some pressures on the economy, although the benchmark interest rate of 4.5% continues to constrain economic growth.