Canada Enters Technical Recession as GDP Shrinks in First Quarter

Canada's economy has entered a technical recession due to weak corporate and government spending, leading to a slight contraction in the first quarter. According to Jin10, Statistics Canada reported on Friday that the country's real Gross Domestic Product (GDP) decreased by an annualized rate of 0.1% in the first three months of the year. This follows a revised 1% contraction in the fourth quarter, down from the previously reported 0.6% decline. The unexpected economic downturn in the first quarter contrasts sharply with earlier forecasts. Economists surveyed by Bloomberg had generally expected Canada's economy to grow at an annualized rate of 1.5% in the first quarter, aligning with the Bank of Canada's projections. The last time Canada recorded two consecutive quarters of negative growth was during the COVID-19 pandemic in 2020, and prior to that, during the oil price slump in 2015.