Canada Enters Technical Recession as GDP Growth Stalls
Canada’s economy saw no growth in the first quarter of 2026 following a decline in the final quarter of 2025, according to Statistics Canada data released on May 29. When annualized, the data points to GDP contraction in two consecutive quarters, which meets the technical definition of a recession. Before the data was released, economists [...]
Canada Enters Technical Recession as GDP Growth Stalls Canada’s economy experienced no growth in the first quarter of 2026, following a decline in the last quarter of 2025. Annualized data indicates GDP contraction in two consecutive quarters, fulfilling the technical definition of a recession. However, on a quarterly basis, Canada narrowly avoids this definition as GDP fell 0.2 percent in Q4 2025 and remained flat in Q1 2026.
- Canada’s economy saw no growth in the first quarter of 2026.
- The final quarter of 2025 saw a decline in GDP.
- Annualized data suggests GDP contraction in two consecutive quarters, meeting the technical definition of a recession.
- Quarterly data shows GDP fell 0.2% in Q4 2025 and was flat in Q1 2026, narrowly avoiding the technical definition of a recession on a quarterly basis.
- Economists had previously expected 1.5% annualized GDP growth for Q1 2026.
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