Canada's Q1 GDP Shrinks 0.1% as Per Capita Output Rises 0.9% on Immigration Curbs
Updated
Updated · The Globe and Mail · Jun 5
Canada's Q1 GDP Shrinks 0.1% as Per Capita Output Rises 0.9% on Immigration Curbs
3 articles · Updated · The Globe and Mail · Jun 5
Summary
Canada’s economy contracted at a 0.1% annualized rate in Q1 2026, following a Q4 2025 decline, while GDP per capita rose 0.9%.
Ottawa’s immigration pullback since 2025 helped drive that split: Statistics Canada says the national population fell last year, lifting per-person output even as total GDP weakened.
From mid-2022 through late 2023, the pattern was reversed: GDP rose 1.4% over five quarters, but per-capita GDP fell 2.4% as record net inflows of 3.1 million people from 2022 to 2024 outpaced growth.
The report argues rapid population growth boosted headline output but diluted productivity because labor supply expanded faster than business investment, with more low-wage workers also weighing on per-capita gains.
Canada’s total economy is still 7.3% larger than at the start of 2022, yet per-capita GDP remains below its level four years ago, complicating recession debate after two straight quarterly contractions.