It's official: 🇨🇦
Canada has unexpectedly entered a technical recession for the first time since the pandemic lockdowns in 2020.
Real GDP in Canada fell -0.1% in Q1 2026 following a -1.0% contraction in Q4 2025.
This marks two-straight quarters of GDP contraction for the first time in six years.
Economists had expected Q1 GDP growth of +1.5%, yet the economy suddenly contracted.
The weak GDP data coincides with a weak job market as well, as the Canadian economy is likely to remain under pressure amid ongoing US tariffs.
Meanwhile, the household saving rate fell to 3.5%, reaching its lowest level since the Q1 2024 as spending rose faster than incomes.
Canada is facing a major economic slowdown.
Sourse: The Kobeissi Letter
