Canada enters technical recession after second straight quarterly GDP decline

Canada’s economy contracted for a second consecutive quarter, officially placing the country in a technical recession for the first time since 2020.

According to new data released Friday by Statistics Canada, real gross domestic product declined at an annualized rate of 0.1 per cent during the first quarter of 2026. The economy had already posted a 1 per cent decline in the fourth quarter of 2025.

Economists generally define a technical recession as two straight quarters of negative economic growth. Statistics Canada said increased gold imports and a slowdown in the oil and gas sector during March contributed to weaker economic performance in the latest quarter.

The slowdown is expected to have particular significance in provinces such as Alberta, where the energy sector remains a major driver of jobs and investment. Analysts are also watching for possible impacts on consumer spending and business confidence across the country.