Canada Economy Slips Again: Is a Recession Starting?

Added: 2026-06-03

[00:00:00]Statistics Canada says real GDP fell 0.1% annualized in the first quarter of 2026 after a revised 1% annualized drop in the final quarter of 2025.

[00:00:11]The two straight declines have pushed the technical recession debate into focus.

[00:00:16]The weakness came from softer government spending, continued business investment softness, and higher imports.

[00:00:23]Those pressures were partly offset by inventories and stronger household spending, especially in financial services and food.

[00:00:30]Economists say the small decline could still be revised, so the recession debate may not be settled yet.

[00:00:36]An advanced estimate for April showed 0.4% growth, which suggests the second quarter could start on firmer ground.