finance
Canada Reports Two Straight Quarters of GDP Decline
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.
May 29, 1:37 PM·1m read2 sources
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Technical RecessMild Correction
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Canada 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. U.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.
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Technical RecessMild Correction
CorroborationLimited · 2 sources
