Prime Minister Mark Carney has responded to the news that the Canadian economy entered a technical recession by saying lower population growth and reduced government spending have contributed to “weakness” in the economy.
Statistics Canada reported on May 29 that Canada’s economy showed no growth in the first quarter of 2026 after negative growth in the last quarter of 2025. The country’s GDP declined for two consecutive quarters on an annualized basis, meeting the common definition of a technical recession.
Asked by reporters in Parliament on June 2 whether Canada was in a recession, Carney responded by saying his government had “been in the process of laying the foundations for a stronger, more resilient, more independent” Canadian economy. He said this involved the “difficult” work of making major investments, changing the way government operates, and securing trade agreements with other countries….