Canada enters technical recession as first quarter gross domestic product unexpectedly contracts

May 29, 2026, 2:39:11 PM UTC(1 hour ago)

Impact: High

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Statistics Canada reported a 0.1 percent annualized decline in real GDP for the first quarter of 2026 marking the second consecutive quarterly drop
The downturn was primarily driven by a 0.7 percent fall in business capital investment and significant declines in government spending
Canada shed over 100,000 jobs in early 2026 pushing the national unemployment rate toward 6.8 percent amid persistent trade tariffs
Despite the technical recession label preliminary data for April 2026 suggests a potential 0.4 percent rebound led by the manufacturing and resource sectors
Economists remain divided as household spending on services grew slightly while the overall population saw a rare second consecutive quarterly decline

JUST IN: 🇨🇦 Canada officially enters a technical recession. https://t.co/aXPP3MiZck