Growth figures suggest Canada has entered what many experts would call a technical recession.

Canada entered what many experts would call a technical recession after reporting two consecutive quarters of contraction in economic growth. Statistics Canada said real gross domestic product fell 0.1 per cent on an annual basis in the first three months of this year. This comes after a one percent decline in the fourth quarter of 2025.The last time Canada was in a technical recession was in 2020, during the beginning of the pandemic. Before that, it was during the oil shock of early 2015.Opposition leader Pierre Poilievre criticized Prime Minister Mark Carney, saying he was the only leader in the G7 who led his country into recession. All other G7 countries face similar tariffs and problems but none have fallen into recession.“Excuses, speeches, discussions and signing ceremonies do not grow the economy,” he said.“Mark Carney is the only leader in the G7 to slide his economy into recession. All other G7 countries are facing similar tariffs and global problems, yet none are in recession…Canada is the only G7 country in recession because of the Carney Liberals increasing industrial carbon taxes, maintaining anti-growth laws and doubling Trudeau’s deficit,” Poilievre said.

What does a tech recession mean for Canada?

There is debate over whether the situation can be called a technical recession or not, as first quarter GDP was unchanged compared to a decline in the fourth quarter of last year. Douglas Porter, chief economist at BMP Capital Markets, said the difference between annual and non-annual figures leaves room for debate over whether it could be called a technical recession. He said the decline in the first quarter has been very small and can be easily revised. April’s 0.4 percent growth also offers a great glimmer of hope.“It’s very possible, you know, it could be a statistical mirage. But I don’t think it’s a debate that we’ve seen basically no growth in the last year,” Porter told CBC News. The Bank of Canada has said that the growth rate this year is likely to be 1.2 percent, which was 1.7 percent last year. It will update its projections in July.