Just how much trouble is Canada's economy in?

Key developments are emerging from the global stage. Just how much trouble is Canada's economy in? Image source, via Getty ImagesByJessica MurphyCanada digital editorPublished27 June 2026, 00:04 BSTUpdated 6 hours agoPrime Minister Mark Carney has promised to reboot Canada's economy, building it into the "strongest in the G7". He has spent weeks travelling overseas in the last year seeking to drum up business interest in Canada as an investment destination.

But there is no doubt the country's economy is struggling, and from tariffs on certain industries to younger Canadians struggling to find work or buy a home, some Canadians are feeling the pain more than others. Five charts help illustrate the state of Canada's economy - and how it's performing compared to other wealthy nations. Technical recession - but it could be worseEconomic growth in Canada this year is forecast to be 1.

The Details

6%, according to the International Monetary Fund (IMF). That's behind the US but ahead of European G7 partners. As the country's economy recovers from the slowdown triggered by US tariffs, the Organisation of Economic Co-operation and Development (OECD), an influential global policy group, projects a modest improvement in gross domestic product (GDP) - growth of 1.

Earlier this month, data from the country's statistics agency said Canada had slipped into a technical recession - two consecutive quarters of GDP decline, in late 2025 and early 2026. "The government is responding in real time to shifting global economic volatility and broad-based supply chain disruption with a serious plan to grow exports, create jobs and invest in productivity forward projects," said John Fragos, a spokesman for Finance Minister François-Philippe Champagne. Economists cautioned against panic, saying the country is likely to avoid a prolonged downturn especially given the small decline.

"Whether one chooses to divine the fact that we're in a recession or not really does miss the point," said Jeremy Kronick, president of the CD Howe Institute, a non-partisan economic think tank. "I mean, it, the economy is weak, right? Rising inflation and pocket book painFor many Canadians, the cost of living is a major worry.

What Experts Say

Some 61% of respondents told the non-profit Angus Reid Institute research firm in a recent poll that it was their top concern, ahead of housing affordability, crime and US tariffs. Inflation in May was 3. 8% in April, driven by higher energy prices, notably gasoline prices due to the fallout from the Iran war.

That's still down from the post-pandemic highs of 7% or 8% in the summer of 2022. It's a pattern repeated across most other wealthy nations, with Canada's inflation rate similar to those in major European economies but still lower than in the US.

The story has become one of the most prominent items on the global agenda.