Prime Minister Responds To GDP Data
Prime Minister Mark Carney acknowledged “some weakness” in Canada’s economy after recent GDP figures showed the country entered a technical recession between October 2025 and March 2026.
Carney made the comments Tuesday outside the House of Commons after reporters asked whether Canada is now in a recession.
Question Follows Earlier Silence
The exchange came after Globe and Mail reporter Laura Stone posted a video Monday showing Carney walking away when asked to comment on whether Canada was in a technical recession.
Conservative Leader Pierre Poilievre shared the video and criticized Carney’s response, saying it showed the kind of reaction to a recession that only a “master economist and crisis manager” could give.
Carney Says Data Will Be Uneven
When asked again Tuesday morning, Carney said his government is laying the foundations for a stronger, more resilient and more independent Canadian economy.
He said that process is beginning to settle in, but added that economic data will be uneven as the government makes policy decisions designed to reshape the economy.
Poilievre Accuses Carney Of Dodging
Poilievre later accused the prime minister of refusing to answer a basic yes-or-no question after what he called a devastating economic report.
He said Carney was failing Canadians by refusing to acknowledge that his government had caused a recession. Poilievre also claimed Canada is facing the only recession in the G7 and in North America.
GDP Contracts For Two Quarters
Statistics Canada reported Friday that annualized GDP contracted by 0.1% in the first quarter of 2026.
The agency also revised the final quarter of 2025 to show a larger decline of 1%. Many economists define a technical recession as two consecutive quarters of negative GDP growth.
Economists Urge Caution
Several economists and Bank of Canada senior deputy governor Carolyn Rogers acknowledged the weak data, but warned against relying on one indicator alone.
Rogers said two quarters of annualized GDP contraction meet one definition of recession, but the need to use the word “technical” suggests analysts should look beyond that single measure.
Scotiabank Questions The Signal
Scotiabank chief economist Derek Holt said the GDP figures should not be taken entirely at face value.
In a note Monday, Holt said it would be irresponsible to make a recession call based on a surge in gold imports, which he described as idiosyncratic rather than reflective of underlying economic activity.
Trump Revives “51st State” Remark
U.S. President Donald Trump responded Monday to the news of Canada’s technical recession with a Truth Social post referencing “51st State.”
The comment revived rhetoric that has previously angered Canadians. U.S. Ambassador to Canada Pete Hoekstra later shared the post on X.
Embassy Defends Sharing The Post
A spokesperson for the U.S. Embassy told Global News that amplifying Trump’s Truth Social posts is standard practice.
The renewed comment added a diplomatic edge to Canada’s economic debate, even as domestic political leaders focused on the recession question.
Poilievre Rejects Trump’s Comment
Poilievre called Trump’s “51st State” remark ridiculous and said it would never happen.
However, he argued that Canadians should not be distracted by the comment. He said the focus should remain on economic hardship at home, including food insecurity and the cost pressures facing families.
Economic Debate Intensifies
The GDP data has sharpened political debate over whether Canada is facing a technical recession or a more limited period of economic weakness.
Carney is framing the slowdown as part of a difficult transition toward a more resilient economy, while Poilievre is blaming Liberal policy for the downturn. The next economic readings will be closely watched to determine whether the weakness persists or whether the economy rebounds after a fragile six-month stretch.
