By Julie Gordon

OTTAWA, (Reuters) – The Canadian economy grew most likely by 5.6% annually in the first quarter of 2017, Statistics Canada stated Friday. This was because growth in February exceeded expectations, and March saw real gross domestic product increasing.

On broad-based increases due to the loosening of pandemic controls, February saw an economy growth of 1.1%, which was higher than analyst expectations of 0.8%. In a flash estimate Statscan stated that March saw a 0.5% increase in the economy, marking the 10th month of expansion.

Statscan stated that in February the reverse effect of Omicron-related restrictions on public health, which were imposed in December, January, and January, had a positive impact on client-facing industries.

In the past two months, the sector of accommodation and food service grew 15.1%. This reversing almost all declines. Transport jumped after people returned to flying and arts and entertainment sectors rebounded.

The construction sector grew again while real estate gained from the surge in home resale. The finance and insurance industries were also buoyed by housing demand, which was driven by home-buyers who rushed to secure mortgages before rates rose.

Strong February results, first quarter estimates and strong February numbers will increase the likelihood that Bank of Canada will proceed with a massive rate hike on June 1. This month, it made a rare 50-basis-point increase.

Canadian dollar maintained its gains of 0.5% at 1.2740 to greenback. That’s 78.49 U.S. Cents.