Canada officially in technical recession after two quarters of decline
Statistics Canada reports real GDP declined for the second consecutive quarter. Weakness in resource extraction and construction drove the contraction.
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Canada has entered a technical recession, with real gross domestic product declining for two consecutive quarters to start 2026.
Statistics Canada said economic growth stalled in the first quarter, with real GDP essentially unchanged on a quarter-over-quarter basis. On an annualized basis, the figure was slightly negative.
The agency mainly blamed higher imports of gold and weakness in Canada's resource extraction industries and construction activity for a 0.1 per cent decline in real GDP in March. Real GDP had previously declined last October, meeting the two-quarter definition of a technical recession.
The data presents a mixed picture. Growth was either flat or positive in the four months between October and March, indicating the economy is not uniformly weak.
Statistics Canada's early estimates for April suggest a sharp rebound: 0.4 per cent monthly growth as mining, quarrying, and oil and gas sectors returned to growth. Conservative Leader Pierre Poilievre attributed the downturn to Prime Minister Mark Carney's policies, citing rising mortgage delinquency rates, increased food bank usage, and five quarters of falling business investment. Finance Minister Francois Philippe Champagne said he remains confident about the Canadian economy.