Carney defends economic plan as Canada meets technical recession definition

Prime Minister Mark Carney has acknowledged signs of weakness in the Canadian economy but is standing by the federal government's economic strategy, even as new data shows Canada has entered a technical recession.

Speaking to reporters in Ottawa on Tuesday, Carney avoided using the term “recession” and instead emphasized the government's long-term economic vision.

“This government has been laying the foundations for a stronger, more resilient and more independent Canadian economy,” Carney said. He noted that major investments, changes in government operations, large-scale infrastructure projects and new international trade agreements are part of the plan to strengthen Canada’s economic future.

Carney’s comments came days after Statistics Canada reported that the country’s gross domestic product (GDP) contracted for a second consecutive quarter, meeting the technical definition of a recession. The economy shrank at an annualized rate of one per cent during the final three months of 2025, followed by a further decline of 0.1 per cent in the first quarter of 2026.