Gross domestic product, income and expenditure, first quarter 2026

Released: 2026-05-29

Real GDP by expenditure
First quarter 2026
0.0%
(quarterly change)
Source(s): Table 36-10-0104-01.

Real gross domestic product (GDP) was unchanged in the first quarter of 2026, after declining 0.2% in the fourth quarter of 2025. Higher imports of goods, particularly gold, were offset by accumulations of business inventories. Decreased business and government capital investment was counterbalanced by higher household spending, as final domestic demand edged 0.1% lower.

On a per capita basis, real GDP increased 0.2% in the first quarter of 2026, as the population declined for a second consecutive quarter and GDP remained unchanged.

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Real-time tables
Real-time tables 36-10-0430-01 and 36-10-0431-01 will be updated on June 8.

Next release
Data on GDP by income and expenditure for the second quarter of 2026 will be released on August 28.

Canada's Q1 GDP contracts on annualized basis, posting two quarters of decline

https://media.zenfs.com/en/reuters.ca/f0873249b0a71e38deafb96d4efc3bf0

June 24, 2009; Toronto, ON, Canada; A view of the Rogers Centre next to the CN Tower and the rest of the Toronto skyline as seen across Lake Ontario. Mandatory Credit: Tom Szczerbowski-US PRESSWIRE · Reuters

By Promit Mukherjee
Fri, May 29, 2026 at 8:45 AM EDT 2 min read

By Promit Mukherjee

OTTAWA, May 29 (Reuters) - Canada's economy contracted in the first quarter of the year on an annualized basis, data showed on Friday, making it two consecutive ‌quarters of annualized decline which some would call a technical recession.

However, on a quarterly ‌basis, the first quarter GDP was unchanged against a decline in the fourth quarter of last year, closely escaping the ​definition of a technical recession on a quarter-on-quarter basis.

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Bank of Canada says don't put much weight on GDP data showing technical recession

By Reuters
June 1, 202612:34 PM EDTUpdated 1 hour ago


A view of the Bank of Canada building in Ottawa, Ontario, Canada May 8, 2025. REUTERS/Blair Gable/File Photo

OTTAWA, June 1 (Reuters) - The Bank of Canada on ​Monday cautioned against ‌putting too much weight on recent GDP ​data which showed ​two consecutive quarters of ⁠decline on an ​annualized basis.

Senior deputy governor ​Carolyn Rogers said while two quarters of annualized ​contraction in GDP ​did meet one definition of ‌a ⁠recession, the April advance estimate showed the economy most ​likely rebounded.

"I ​think ⁠we need to be careful ​not to put ​too ⁠much weight on any one indicator," ⁠she ​told a ​parliamentary committee.

Reporting by Promit Mukherjee; ​editing by David Ljunggren

Surprise First-Quarter GDP Contraction Pushes Canada Into Technical Recession

The economy has weakened again, but analysts say it’s not enough to warrant an interest rate cut.

Vikram Barhat
May 29, 2026

Key Takeaways
* The Canadian economy shrank in the first quarter of 2026, driven by weak investment and a jump in imports.
* The economy could bounce back in the second quarter, supported by higher energy prices from the Iran war and government spending.
* Strong advanced data for April suggests a rebound.

The Canadian economy unexpectedly shrank in the first quarter of 2026, as weaker business and government spending offset higher household spending. But analysts say elevated energy prices linked to the Iran war and early signs of a rebound in the second quarter could keep the Bank of Canada in wait-and-see mode.

Statistics Canada reported a surprise slowdown in GDP, which shrank 0.1% on an annualized basis in the first quarter of 2026. That’s a stark contrast with the FactSet consensus estimate of 1.4% growth. The contraction follows a 1% decline in the final quarter of 2025.

The stall was led by a surge in spending on foreign goods, especially gold, which outweighed the gains from businesses stocking up on goods. At the same time, a tariff-driven quarterly decline of 0.1% in exports, led by passenger cars and trucks, further contributed to the quarterly GDP slowdown.

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