Canada GDP

GDP ended first quarter on a soft note. Canada’s economy remained flat in the first quarter of 2026, contracting slightly by 0.1 per cent on an annualized basis following a 1.0 per cent decline in the previous quarter. This second consecutive quarterly contraction was driven by slower consumption growth, declining investment, and weaker net exports amid surging imports. Part of the decline reflects temporary factors, including a winter-related production halt in the auto sector that has since reversed. More recently, exports have likely strengthened since April alongside a sharp rise in global oil prices. As a result, GDP is expected to rebound in the second quarter. In addition, despite the weak headline figure, real GDP per capita rose 0.9 per cent, suggesting underlying conditions were stronger on a per-person basis amid muted population growth.