Statistics Canada reports the economy contracted for two consecutive quarters, meeting a common definition of a technical recession.
But the C.D. Howe Institute’s Business Cycle Council, Canada’s unofficial recession authority, cautions against the label. In a Friday bulletin, the council says two quarters of GDP decline are not sufficient, arguing the weakness is not yet widespread or persistent enough.
The group also notes the first-quarter marginal decline is subject to revision.
Political blame has flared. Conservatives accuse the Liberal government of a “full-blown recession.” Prime Minister Mark Carney acknowledges “some weakness” as Canada pivots away from U.S. reliance.
