News Analysis
Canada made a slight foray into a technical recession in the first quarter of 2026, but the underlying picture may be more nuanced.
Canada’s economy fell by 1 percent in the fourth quarter of 2025 and by 0.1 percent in the first part of 2026 on an annualized basis. The technical definition of a recession is two consecutive quarters of negative gross domestic product (GDP) growth.
Some economists told The Epoch Times that while the recession is relatively minor and GDP growth could be revised upward, the overall outlook for the Canadian economy could still be cause for concern. They also noted that the Bank of Canada and Statistics Canada missed the mark when trying to predict GDP growth for the first quarter of the year, but said geopolitical considerations made this more difficult….