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Jun 2, 2026 3:12 PM - Connect Newsroom - Ramandeep Kaur with files from The Canadian Press

Carney Defends Economic Agenda Amid Recession Debate in Canada

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Prime Minister Mark Carney speaks with reporters in Ottawa on June 2, 2026, as questions continue about the state of the Canadian economy. (Photo: The Canadian Press)

Prime Minister Mark Carney acknowledged signs of weakness in the Canadian economy on Tuesday but defended the federal government's economic strategy amid criticism from Conservative Leader Pierre Poilievre.

Speaking to reporters in Ottawa, Carney said his government is focused on building a stronger, more productive and more independent Canadian economy. He declined to describe the current situation as a recession, despite renewed debate following the release of recent economic data.

According to Statistics Canada figures released last week, the Canadian economy recorded contractions in two consecutive quarters, a measure commonly referred to as a technical recession. The data has prompted opposition criticism and increased scrutiny of the federal government's economic policies.

Carney said the government is also seeking new international partners for strategic sectors, including the steel and aluminum industries, which have been affected by tariffs and global trade pressures.

Bank of Canada Senior Deputy Governor Carolyn Rogers has urged caution in interpreting the latest figures, saying no single indicator should be used to determine whether the country is in a recession. Rogers said it would be premature to characterize the current economic conditions as a recession based solely on one measure.

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