Canada Enters Technical Recession After Two Quarters of GDP Contraction
Real GDP fell 0.1 percent in the first quarter of 2026 after a 1.0 percent drop in the fourth quarter of 2025. Economists had forecast 1.5 percent growth for the latest quarter.
moneysense.caCanada recorded two consecutive quarters of negative real GDP growth for the first time since 2020, meeting the technical definition of recession. 0 percent in Q4 2025. 5 percent growth for the first quarter.
5 percent, the lowest level since Q1 2024, as consumer spending outpaced income growth. S. tariffs on Canadian exports.
The last technical recession ended in 2020 during pandemic-related lockdowns. No government officials or agencies were named in the data releases. Further quarterly figures will determine whether the contraction extends beyond the two-quarter threshold.
Key Facts
Story Timeline
2 events- Q4 2025
Real GDP contracted 1.0 percent.
2 sources@unusual_whales · @KobeissiLetter - Q1 2026
Real GDP contracted 0.1 percent, meeting recession criteria.
2 sources@unusual_whales · @KobeissiLetter
Potential Impact
- 01
Ongoing U.S. tariffs continue to weigh on Canadian export sectors.
Transparency Panel
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