Canada records two consecutive quarters of GDP decline

Prime Minister Mark Carney has acknowledged economic weakness following two consecutive quarters of negative growth, a development that meets a common technical definition of a recession. The prime minister attributed some of the weakness to his government's policy decisions, including a reduction in immigration levels, while avoiding the term "recession" itself.

Statistics Canada data released last week showed the country's gross domestic product contracted by 0.1 percent in the first quarter of 2026, following a revised one percent decline in the final quarter of 2025. This marks the first time Canada has recorded two straight quarters of negative growth since the pandemic.

In response to questions, Carney stated that the government is laying the foundations for a stronger economy and that data would be uneven during this transition. He pointed to government decisions to lower immigration targets and control spending as factors contributing to the current weakness. Opposition Conservative Leader Pierre Poilievre seized on the data, calling Canada the only G7 nation in a recession and highlighting the struggles of Canadians with the cost of living.