OECD Sees Canada GDP Rebounding to 1.7% by 2027 After 2-Quarter Technical Recession
Updated
Updated · Global News · Jun 3
OECD Sees Canada GDP Rebounding to 1.7% by 2027 After 2-Quarter Technical Recession
1 articles · Updated · Global News · Jun 3
Summary
Canada’s GDP growth is projected to strengthen to 1.2% by late 2026 and 1.7% in 2027, the OECD said days after data showed the economy had slipped into a technical recession.
Two consecutive annualized declines triggered that label: GDP fell 0.1% in the first quarter of 2026 after a revised 1.0% drop in the fourth quarter of 2025, though quarter-over-quarter growth was essentially flat.
Household consumption, defense and infrastructure spending, and a gradual recovery in business investment are expected to drive the rebound, while Canada’s status as a net energy exporter should support exports.
Higher energy prices tied to the Middle East conflict may lift inflation near term, but the OECD said price growth should return to the Bank of Canada’s 2% target over time, keeping rates unchanged in the near term.