Gross domestic product declined at an annual rate of 0.1 per cent, after dropping one per cent in the fourth quarter, Statistics Canada reported. That satisfies the most basic definition of a recession, which is consecutive quarters of negative growth. (The Logic)

Talking point: Recessions are best determined through qualitative analysis, and the first-quarter decrease is so small that it’s probably more accurate to say the economy stalled. Still, the numbers are a wake-up call, as the Bank of Canada was expecting growth of 1.5 per cent. Exports declined, business investment fell for the fifth consecutive quarter and the household saving rate dropped to the lowest in two years. Canada’s economy is under siege and its capacity to offset U.S. tariffs on automobiles, metals and lumber is running out. Normally, the central bank would cut interest rates, but with inflation accelerating, its hands could be tied.

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