Canada Enters Technical Recession After 0.1% Q1 GDP Drop
Updated
Updated · Bloomberg · Jun 3
Canada Enters Technical Recession After 0.1% Q1 GDP Drop
3 articles · Updated · Bloomberg · Jun 3
Canada’s economy contracted at a 0.1% annualized rate in the first quarter, marking a second straight quarterly decline and its first technical recession since 2020.
Statistics Canada said weak business and government spending drove the pullback, underscoring persistent slack as US trade tensions weigh on activity.
The downturn followed a 1% annualized contraction in the fourth quarter, revised down from a previously reported 0.6% decline.
Two consecutive quarters of shrinking output add pressure to the outlook for Canada’s economy as it navigates softer domestic demand and external trade strain.