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Is Canada in recession? ‘We see some weakness,’ Carney says, touts ‘process’

Click to play video: 'Carney says economic plan still ‘settling in’ as Canada slides into technical recession'
Carney says economic plan still ‘settling in’ as Canada slides into technical recession
Canadian Prime Minister Mark Carney acknowledged “some weakness” in the Canadian economy after recent GDP data showed the country in a technical recession in the six-month period between October 2025 and March 2026. Carney said his government’s economic plan is “settling in” and that “the data would be uneven” as its actions to reduce immigration and government spending are felt.

Prime Minister Mark Carney acknowledged “some weakness” in the economy after recent GDP data showed Canada was in a technical recession in the six-month period between October 2025 and March 2026.

Carney spoke to reporters outside the House of Commons on Tuesday, and was asked if Canada is in a recession. The question came after Globe and Mail reporter Laura Stone posted video Monday asking Carney to comment on whether Canada is in a technical recession, and he walked away without answering.

Conservative Leader Pierre Poilievre had shared Stone’s video, saying: “This is the kind of decisive response to a recession that only a master economist and crisis manager could give.”

Carney was asked the question again by reporters while heading into cabinet on Tuesday morning.

“This government’s been in the process of laying the foundations for a stronger, more resilient, more independent Canadian economy. That process is settling in,” Carney said.

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“As we do all that, the data is going to be uneven. We see some weakness, in part because of clear decisions by the government.”

Click to play video: 'Latest GDP numbers show “technical recession” in Canada'
Latest GDP numbers show “technical recession” in Canada

Poilievre later told reporters that Carney had refused to answer “a basic yes or no question” after “hiding from this devastating economic report.”

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“The prime minister once again is failing the Canadian people by refusing to tell them the truth: that he caused a recession,” Poilievre said.

“It’s the only recession in the G7, the only recession in North America. And he needs to rapidly reverse the Liberal policies that caused that recession.”

Annualized GDP in the first quarter of 2026 showed the economy contracted by 0.1 per cent, Statistics Canada revealed Friday, and the final quarter of 2025 was revised to show a larger decline of one per cent.

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Most economists consider two back-to-back quarters of negative GDP to be the technical definition of a recession.

Click to play video: '“Where is he anyway?”: Poilievre says Carney not answering questions after Canada hits recession'
“Where is he anyway?”: Poilievre says Carney not answering questions after Canada hits recession

Several economists and Bank of Canada senior deputy governor Carolyn Rogers acknowledged the results, but said a recession should take into account multiple signals.

“I think we need to be careful not to put too much weight in any one indicator,” Rogers said in Ottawa on Monday.

“Two quarters of annualized contraction in GDP does meet one definition of a recession, but simply the fact that you have to put the term ‘technical’ in front of it sort of tells you that you really need to look past that one indicator.”

Scotiabank chief economist Derek Holt said in a note on Monday that the GDP reports should not be taken at face value, especially given a surge in gold imports.

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“It would be irresponsible to make a recession call on the basis of surging gold imports that are idiosyncratic in nature versus reflective of underlying activity in the economy,” Holt said.

Trump revives '51st state' rhetoric over recession report

U.S. President Donald Trump on Monday responded to news about Canada slipping into a technical recession on his Truth Social account while posting “51st State,” reviving rhetoric that has angered Canadians in the past.

The post was then shared by U.S. Ambassador to Canada Pete Hoekstra on X on Tuesday.

A U.S. Embassy spokesperson told Global News in an email that amplifying Trump’s Truth Social posts “is our usual practice.”

Poilievre said Tuesday that Trump’s comment was “ridiculous, and it’s never going to happen.”

“We have to make sure that we don’t allow ridiculous comments like that to distract us from the very real suffering that Canadians are experiencing as a result of Liberal policies here at home, the families who can’t afford food, the one in four Canadians who are living in food insecurity,” he said.

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“They don’t want us to be distracted by a foolish comment like that, they want us to focus on reversing the Liberal policies that have made them hungry in the first place.”

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