Canada has entered a technical recession for the first time since 2020 after its economy contracted for a second consecutive quarter.
• Canada’s GDP shrank 0.1% in the first quarter, following a revised 1% contraction in the previous quarter. Economists had been expecting growth during the period.
• The weaker-than-expected data comes as U.S. tariffs continue to weigh on parts of the Canadian economy, with exports of passenger vehicles and light trucks declining.
• The Canadian dollar fell following the report, while business investment posted a fifth consecutive quarterly decline and final domestic demand also weakened.
