Carney Says Reduced Immigration, Lower Government Spending Causing Economic ‘Weakness’
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.
TL;DR
- Canada's economy has entered a technical recession, defined by two consecutive quarters of negative GDP growth.
- Prime Minister Mark Carney cited lower population growth and reduced government spending as contributors to economic 'weakness'.
- Carney emphasized his government's efforts to lay foundations for a stronger, more resilient Canadian economy.