Canada slips into technical recession as economic growth stalls in 1st quarter

Canada's economy ‌contracted in the first quarter of the year on an annualized basis, Statistics Canada 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.

Gross domestic product declined at an annualized rate of 0.1 per cent in the first quarter, Statistics Canada ​said, compared with a downwardly revised contraction of one per cent in the fourth quarter ⁠of last year.

Two consecutive quarters of contraction in economic growth is termed a technical recession.

Analysts polled by ⁠Reuters and the Bank of Canada had predicted ‌the first quarter growth at annual rates at a robust 1.5 per cent.

More to come