Canada’s economy shrank slightly in the first three months of the year, marking two straight quarters of decline and raising concerns about a technical recession.
Statistics Canada said the economy fell at an annualized rate of 0.1 per cent in the first quarter, following a revised one per cent drop at the end of last year. Economists had expected stronger growth.
The slowdown comes as trade uncertainty and tariffs continue to hurt business investment, hiring and spending. Imports also weighed on the economy, although higher household spending on food and financial services helped offset some of the losses.
The last technical recession in Canada happened during the COVID-19 pandemic in 2020.
