Canada slides into technical recession as GDP stalls
Real gross domestic product declined for two consecutive quarters; gold imports and weak resource sector drag blamed for economic slowdown.
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Canada's economy has slipped into a technical recession, with real gross domestic product declining for two consecutive quarters, Statistics Canada reported Thursday.
The agency said economic growth stalled in the first quarter and real GDP was slightly negative on an annualized basis. The primary culprits: higher imports of gold and weak performance from Canada's resource extraction industries in March, which dragged down overall economic activity.
On a quarter-over-quarter basis, growth was essentially unchanged — but small movements in quarterly figures are magnified when converted into annualized rates. The data paints a mixed picture: real GDP declined in October and March, but growth was flat or positive in the four months between.
The news comes as the energy sector remains crucial to Alberta's economy. A technical recession — two consecutive quarters of negative growth — traditionally signals economic stress, though the mixed monthly data suggests underlying volatility rather than a uniform contraction.
Stats Can's early estimates for April show a sharp rebound: real GDP is forecast to grow 0.4 per cent in the month as mining, quarrying, and oil and gas sectors returned to growth. How long that momentum holds will shape the remainder of 2026.