Canada enters technical recession as economy contracts
GDP shrank for a second consecutive quarter. Poilievre blames Carney's policies; the government points to weak resource extraction.
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Canada's economy contracted for the second quarter in a row to start 2026, crossing into what some economists call technical recession territory. Statistics Canada reported a 0.1 per cent decline in real GDP in March.
Conservative Leader Pierre Poilievre attributed the downturn to Prime Minister Mark Carney's policies, citing rising mortgage delinquency rates, increased food bank usage, and five quarters of falling business investment.
Finance Minister Francois Philippe Champagne expressed confidence in the economy's trajectory. Energy and Natural Resources Minister Tim Hodgson pointed to plans for new nuclear, wind, mining, and natural gas projects as drivers of future growth.
Statistics Canada identified weakness in resource extraction industries and construction activity as the primary culprits behind the contraction. The economic stall arrives amid broader uncertainty about inflation, interest rates, and household spending power.