The slower pace of growth was in line with expectations and service industries drove growth.
For the real estate sector, the slower pace of the housing market meant a 0.6 per cent drop in the output from real estate agents and brokers.
Construction grew at 0.1 per cent, although this was driven by non-residential as the slower housing market saw residential construction decline 0.9 per cent following 5 months of gains.
More market update:
The Canadian economy grew at an annual rate of 0.2 per cent in April following a 0.5 per cent rise in March, Statistics Canada reported Friday.