Published • loading... • Updated
Canada Slips Into Technical Recession as Economy Stalls in Q1: StatCan
Statistics Canada said imports of gold and weak resource extraction helped drive a 0.1% annualized GDP decline, after a revised 1% drop in the prior quarter.
- On Friday, Statistics Canada reported the economy shrank 0.1% annualized in the first quarter, following a one per cent contraction in the fourth quarter, marking two consecutive quarters of annualized decline widely defined as a technical recession.
- Trade conflict with the United States triggered much of the GDP weakness, Douglas Porter, chief economist at BMO Economics, noted, as exports dropped 4.1%, manufacturing and equipment investment fell 3.6%, and housing declined 3.3%.
- Government spending fell 2.4%, while business capital investment decreased 0.7% for its fifth consecutive quarterly decline; consumer spending rose 1.5% quarter over quarter, providing limited resilience.
- The Canadian dollar weakened following the data, trading down 0.28% to C$1.3819 against the United States dollar, though financial markets continue pricing in a potential Bank of Canada rate cut in 2026 despite the negative surprise.
- Statistics Canada forecasts April GDP will rebound with 0.4% growth; Capital Economics noted rising oil and gas activity suggests the economy likely began recovering at the start of the second quarter despite recession debate.
Insights by Ground AI
Podcasts & Opinions
51 Articles
51 Articles
For the first time since 2020, Canada has entered a recession, primarily due to weak business and government spending. According to the Canadian Statistics Office, gross domestic product fell unexpectedly by 0.1 percent year-on-year in the first three months of this year. The economy also contracted in the final quarter of last year.
USA & Canada Intelligence Brief — Friday, May 29, 2026
USA & Canada Intelligence Brief for Friday: Statistics Canada confirmed Canada has slipped into technical recession after Q1 GDP stalled following a Q4 2025 decline; US April PCE hit a 3-year high at 3.8% YoY with the saving rate at the lowest in nearly 4 years; S&P 500 and Nasdaq closed at records on Snowflake's 36.5% surge and Micron crossing $1T market cap.
Coverage Details
Total News Sources51
Leaning Left17Leaning Right7Center10Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 29%
R 21%
Factuality
To view factuality data please Upgrade to Premium
