The growth numbers indicate that Canada has slid into what many experts call a technical recession.
Canada has entered what many experts call a technical recession after reporting two straight quarters of contraction in economic growth. Statistics Canada said real gross domestic product fell 0.1 per cent year-on-year in the first three months of this year.
This comes after a downwardly revised contraction of one percent in the fourth quarter of 2025.The last time Canada entered a technical recession was during the start of the pandemic in 2020. Before that, it was during the oil shock at the beginning of 2015.Opposition Leader Pierre Poilievre criticized Prime Minister Mark Carney and said he was the only G7 leader who led his country into recession. All the other G7 countries face the same definitions and problems, but none of them has descended into recession.“Excuses, speeches, buzzwords and signing ceremonies do not grow the economy,” he said.“Mark Carney is the only G7 leader who has driven his economy into recession. All the other G7 countries face the same tariffs and global problems, yet none of them are in recession…Poilievre added that Canada is the only G7 country suffering from a recession due to the Carney Liberals raising industrial carbon taxes, maintaining anti-development laws, and doubling Trudeau’s deficit.
What does a technical recession mean for Canada?
There is debate about whether the situation can be called a technical recession or not, as GDP was unchanged in the first quarter versus a decline in the fourth quarter of last year. Douglas Porter, chief economist at BMP Capital Markets, said the difference between the annual and non-annual numbers lends itself to debate about whether this could be called a technical recession. He said the decline in the first quarter was very small and could be easily adjusted.
Growth of 0.4 percent in April also offers a big glimmer of hope.“It’s very possible that this is, you know, a statistical mirage. But what I don’t think is debatable is that we’ve seen almost zero growth over the last year,” Porter told CBC News. The Bank of Canada said growth this year is likely to reach 1.2 per cent, down from 1.7 per cent last year. It will update its forecast in July.
