Canada enters technical recession as economy stalls
GDP contracted for a second consecutive quarter in early 2026, marking the threshold economists use to define recession.
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Canada's economy contracted for the second quarter in a row to start 2026, crossing the threshold some economists use to define a technical recession.
Statistics Canada reported a 0.1 per cent decline in real GDP in March, with weakness in resource extraction and construction activity driving the contraction.
Opposition Leader Pierre Poilievre blamed Prime Minister Mark Carney's policies for the downturn, pointing to rising mortgage delinquency rates, increased food bank usage, and five consecutive quarters of falling business investment as evidence of deeper economic pain beyond the technical measure.
Finance Minister Francois Philippe Champagne said he remains confident about the Canadian economy's direction. Energy and Natural Resources Minister Tim Hodgson cited plans to build new nuclear, wind, mining, and natural gas projects as drivers for future growth.
The debate underscores how Canadians are feeling economic pressure even as officials debate whether the contraction qualifies as a formal recession.