‘It’s a Little Uncertain’: Londoners React to Canada Entering Technical Recession
Markets still price a Bank of Canada rate cut in 2026 after Statistics Canada said the economy shrank 0.1% in the first 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.
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11 Articles
‘It’s a little uncertain’: Londoners react to Canada entering technical recession
The word ‘recession’ appears to be unnerving to many Londoners. Within an hour of the Canadian economy falling into a 'technical recession,' CTV News found that most people had heard the news and were alarmed.
Canada slips into technical recession as economic growth stalls
Canada's economy contracted in the first quarter of the year on an annualized basis by a slim margin, Statistics Canada data showed on Friday, making it two consecutive quarters of annualized decline, which some would call a technical recession.
News24 | Canada enters surprise recession amid tariff uncertainty
Canada’s economy posted a surprise contraction in the first quarter versus the year before, making it two straight quarters of annualised decline - which some economists call a technical recession - as the country struggles with US tariff uncertainty.
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