Prime Minister Mark Carney makes an announcement on Parliament Hill in Ottawa on May 14, 2026. The Canadian Press/Sean Kilpatrick
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.
