Carney Says Reduced Immigration, Lower Government Spending Causing Economic ‘Weakness’ Canada’s economy has entered a technical recession, with no growth in the first quarter of 2026 following negative growth in the last quarter of 2025. Prime Minister Mark Carney attributes this ‘weakness’ to lower population growth and reduced government spending. He stated that his government is focused on building a stronger, more resilient economy through investments, operational changes, and trade agreements.

• 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.