OTTAWA — The federal government is defending its economic record after Canada entered a technical recession in the first quarter of 2026 according to Statistics Canada. The economy marked the second consecutive quarter of economic decline.In response to the situation, Finance Minister François-Philippe Champagne’s office argued Canada remains resilient despite growing international uncertainty.“Over the past year, Canadians have navigated a rapidly changing, and increasingly fragmented world,” said John Fragos, a spokesman for Champagne.“Our economy continues to show resilience in the face of unprecedented economic disruptions, yet American tariffs and the volatility brought on by global conflicts remain and are impacting the Canadian economy.”Fragos said the government is focused on strengthening the economy through investments announced in Budget 2025 and the recent spring economic update.“That is why our government is focused on what we can control – building a stronger, more independent, and more resilient economy at home,” he said.“We are moving with speed and ambition to diversify our trade partners abroad and build our strength at home.”.The government pointed to what it described as tens of billions of dollars in investments aimed at creating jobs, advancing major national projects and supporting workers.Fragos also said affordability remains a priority despite the economic slowdown.“While this takes hold and as we continue to make growth-oriented investments, we continue to support Canadians who are struggling with the cost of living,” he said.“The government will continue to focus on creating a stronger, more sovereign, Canadian economy.”Statistics Canada’s preliminary estimate suggests the economy rebounded in April, with real GDP expected to grow 0.4% as activity in the mining, quarrying and oil and gas sectors recovered.
