Canada enters technical recession as spending declines



The Canadian economy contracted slightly in the first quarter, driven by falling business and government spending. That pullback, combined with a contraction in the fourth quarter of 2025, places Canada in what economists define as a technical recession: two consecutive quarters of negative GDP growth.

For a country that managed to grow its real GDP by 1.7% in 2025, the slowest pace since 2020, the slide into contraction territory marks a meaningful shift. Canada shed more than 100,000 jobs in January and February of 2026 alone, pushing the unemployment rate to roughly 6.7-6.8%.

The Canadian Federation of Independent Business projects GDP growth of approximately 1.1-1.6% for 2026 overall, with first-quarter estimates around 1.6%. But those forecasts were built on the assumption of a modest recovery in the first half of the year, a recovery that now looks increasingly unlikely given the contraction data.

Business investment for 2026 is projected to grow by a mere 0.6% according to some analysts.

https://cryptobriefing.com/canada-technical-recession-spending-declines/

Quote from: Oliver the Second on Today at 10:26:32 AMCurry Crunch!

https://x.com/audicy519/status/2060076896201699384

That is now the number one breakfast cereal in Canada.

Curry Crunch!

https://x.com/audicy519/status/2060076896201699384

So there was a business case for natural gas exports to Germany after all.

Of course, we never thought otherwise. But back in August 2022, with Europe freezing and scrambling after Russia invaded Ukraine, German Chancellor Olaf Scholz came to Canada hat in hand looking for reliable LNG supplies. Prime Minister Justin Trudeau looked him in the eye and delivered his classic line, that there was "never a strong business case" for Canadian LNG exports to Europe. Too expensive, too far, Europe was going green anyway, etc.

Germany shrugged, turned around, and signed a fat long-term deal with Qatar instead.

Quote from: Lokmar on May 28, 2026, 07:33:47 PMCucknadians got what they voted for.

Most of Canada wants to become some third world commie dictatorship. Alberta and Saskatchewan do not.

Quote from: Herman on May 28, 2026, 07:13:04 PM

Cucknadians got what they voted for.

Quote from: Herman on May 20, 2026, 06:30:46 PMTheir plan is managed decline. It is working.

We know.

Quote from: Brent on May 20, 2026, 12:56:11 PMEven trudeau and carney voters know life has gotten worse for the working class on the watch of those two evil globalists.

Their plan is managed decline. It is working.

Quote from: Herman on May 19, 2026, 06:36:33 PM

Even trudeau and carney voters know life has gotten worse for the working class on the watch of those two evil globalists.

New analysis drawn from the Rystad Energy UCube comprehensive data set reveals that nearly $450 billion in Alberta's oil sands sector upstream investment could be wiped out under the Carney-Smith NZE agenda.

Investment risk for the oil sands sector is defined as the cumulative reduction in upstream exploration and production (E&P) investment between the Current Policies Scenario (CPS) and the NZE Scenario between 2026 and 2050.

Under current oil demand levels, which represent Alberta government and energy industry expectations, the Alberta oil sands sector investment is estimated at $466 USD billion. However, at the NZE Scenario oil demand levels, the Alberta oil sands sector investment is $18.7 billion.

Premier Danielle Smith has been enthusiastically pitching her Alberta net zero agenda since July 2022, reaffirming it in the 2023 Alberta climate change plan, talking about it extensively in Ottawa with MPs, and officially signing on to it, along with the Carney federal Liberals, as the headline item of the Canada-Alberta MOU.

The Alberta government claims that the NZE MOU will result in hundreds of billions of new investment in the Alberta and Canadian economies. However, the Alberta government refuses to release a comprehensive economic and financial risk assessment of the impact of Carney-Smith NZE. A recent request for information revealed nearly 30,000 pages in responsive records, but very little has even been released. So, what information is the Smith government hiding from Albertans?

The NZE Scenario (NZE) sees efforts to meet the Paris Agreement goal of limiting global warming to below 2 degrees and then pursuing efforts to limit global warming to 1.5 degrees by 2050 through net zero greenhouse gas (GHG) emissions. Oil demand peaks at 101.6 mbpd in 2025 and then falls to 21.7 mbpd by 2050.

The $450 billion risk to Alberta oil sands investment under Carney-Smith NZE could crater the entire Alberta economy. This is what happens when governments make public policy decisions based on political talking points, rather than relying on robust risk assessment.

Carney-Smith NZE needs to be put to a 2026 fall provincial referendum so Albertans can decide whether this is a course worth pursuing. I am very confident that, when presented with full impact analysis information, Albertans will tell the Smith government to scrap its commitment to NZE. 

Not the friendly green hero they want you to believe...
This is Mark Carney – The Toxic Economist.
Greenwashing expert. Brookfield's guy.
Turning Canada into a toxic debt swamp while calling it "saving the planet."
You pay the bills.
He gets the fees.
Wake up.

Canada's auto industry is heading for Extinction.
Mexico has stolen Canada's Lunch.
Canada Fell
2.4m vehicles produced in 2000 to 1.2m in 2025
Mexico Rose
1.9m vehicles produced in 2000 to 4.1m in 2025
Dear Canada: Did you notice you're De-Industrializing?
Well done Liberal Voters.

Tomorrow, Mark Carney could use an Order in Council to move a pipeline to the Pacific forward.
Instead we get fake MOUs and unconstitutional vetoes. Canada is not a serious country.