The Canadian economy is in a “vulnerable position,” according to at least one economist, after the latest GDP data revealed a technical recession.
Statistics Canada said Friday that GDP in the first quarter of 2026 fell 0.1 per cent on an annualized rate, and follows a revised one per cent annualized decline in the fourth quarter of 2025. A technical recession is most commonly defined as two consecutive quarters with negative economic growth.
Friday’s release came as a surprise to some economists, who were expecting to see a positive result for the quarter.
“First-quarter growth was a disappointment. We’re certainly in a vulnerable position, with some of the key engines of growth beginning to sputter,” said principle economist Andrew DiCapua of the Business Data Lab and Canadian Chamber of Commerce in a statement.
“April shows some hope, but this does not set the economy up for the growth we had expected this year.”
The statement added: “The outlook remains choppy.”
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On a quarter-over-quarter basis, the agency says growth was essentially unchanged, but small movements in quarterly figures are magnified when converted into annualized rates. Real GDP declined last October and in March, but growth was either flat or positive in the four months in between.
“The Canadian economy continued to struggle in the first quarter, as GDP posted another decline,” said Katherine Judge at CIBC Economics in a statement.
“The 0.1 per cent annualized drop was in stark contrast to the consensus for a rebound to 1.5 per cent.”
Judge highlights how there were sizeable drops in business and residential investment as well as government spending. She adds that this was the fifth straight drop in business investment amid uncertainty brought on by trade war and U.S. tariffs.
Statistics Canada mainly blames higher imports of gold and a weak month for Canada’s resource extraction industries in March for dragging down recent economic activity.
Exports fell 0.1 per cent overall in the first three months of the year, even as Canada’s oil sector increased shipments of crude oil products and natural gas. Statistics Canada says declines in exports of passenger vehicles and lights trucks offset most of those gains as the sector continues to get hit by U.S. tariffs.
Friday’s release comes one day after the Bank of Canada said the economy is facing a “volatile” global environment and is vulnerable to shocks as households and businesses continue to struggle.
The agency’s early estimates for real GDP in April call for a sharp rebound to 0.4 per cent growth in the month as the mining, quarrying and oil and gas sectors returned to growth.
– With files from The Canadian Press
Well this is the least shocking news we’ve had in a while.
Canada is expected to have one of the worst performing advanced economies in the OECD for at least the next decade or longer. We can thank the horrible policies of Trudeau and Carney. Carney was Trudeau’s economic advisor from 2020 – 2025
Whaaaat?… yesterday in NYC (home of the Carney family and his Brookfield gang that he moved there to avoid Canadian taxes), Carney shouted from the rooftops that Canada has the best economy in the G7! Uh oh…then today:
“Real GDP has now declined for two consecutive quarters – meeting the definition of a technical recession”.
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Carneys plan coming to fruition then,
Soon their will be 3 million using food banks 2 million without a home living in tents , youth unemployment will be at
75 % and yet the Elbows up crowd with still support and defend the Liberals just like Global do.
Don’t worry guys our leader ans savior mark carney will save us!!!!
Jk lol no he wont , he wants us to be desperate and broke,
This country sucks just as much as conservatives
Canada has been in a recession for years
Unfortunately the bought media would rather collect their cheque than report news that is damaging to the LPC
You “have their back” after all
Elbows up!
Canada has been in a recession for a decade! A recession started by Trudeau and being made worse by Carney! F*scism needs to be stomped out. Media needs to be burned out! Those excepting bribes need to be jailed for treason! Carney needs to be thrown out of this country!
Don’t worry the media will blame trump or Iran for a decade of markin Carneau anti canada policy. Enjoy poverty cucknucks you voted for it since 2015
So some can say it and others can’t. Its call tareting Global! You are targeting me and thats illegal! ITS CALLED FREEDOM OF SPEECH YOU AZZHOLES! I will have my say even if you censor me! GO TO H*LL GLOBAL!
A “technical recession”…..
Wow, way to carry water for the government, Global… don’t worry Liberals will keep up with the payments, they can’t do it without paid media.
Heck yea! Elbows up… or is it Canada Makes America Great Again!?
Either way Lord Carney has made everything so much better!….