Overview
- Statistics Canada reported on May 29 that real GDP fell at a 0.1% annualized rate in Q1 2026, marking a second consecutive quarterly annualized decline.
- On a quarter‑over‑quarter basis the economy was essentially flat, a distinction that has economists split over whether the two annualized declines constitute a true recession.
- StatCan singled out a March drop driven by higher imports of gold and weakness in resource extraction, while stronger inventory accumulation partly offset the import drag.
- Business capital investment fell 0.7% in Q1 for a fifth straight quarter, and analysts say prolonged trade uncertainty and U.S. tariffs have suppressed hiring and corporate spending.
- An advance estimate showed a roughly 0.4% rebound in April, which the Bank of Canada will use to judge near‑term interest‑rate choices and what the slowdown means for households and small businesses