Prime Minister Mark Carney defended his government’s economic track record in the House of Commons as Conservative Leader Pierre Poilievre pressed for an answer on whether Canada is in a real or “technical” recession.
In his response, Carney argued his government is laying the groundwork for an economy that will be “stronger, more resilient, more independent.” He pointed to rising business investment and wage growth despite U.S. tariffs and ongoing global economic uncertainty.
The exchange came during question period on June 3, where Poilievre asked Carney whether Canada is in a recession or a “technical” recession.
“We’ve had two consecutive declining quarters of GDP growth. We are the only country in the G7 that can say that. The only country in the G7 that has seen the economy shrink in three of the last four quarters. The only country whose GDP is smaller than it was a year ago, when the prime minister took office,” Poilievre said.
“Will he tell us, are we in a recession or a technical recession? Which is it?”
Carney pointed to a new report by the Organisation for Economic Co-operation and Development that said Canada will have the second strongest economy in the G7 this year and next.
The report noted household consumption and government spending on defence and infrastructure “will continue to underpin growth,” while business investment is expected to recover gradually.
Poilievre argued that every other country in the G7 has had to face the same pressures from tariffs, wars, and energy prices, yet Canada is the only country to have entered a recession.
“Canadians are skipping meals. There are 112,000 Canadians who have lost their jobs. We have the second worst unemployment rate in the G7. Can the prime minister stand up and answer a very simple question: Are we in a recession or just a technical recession?” Poilievre said.
Meanwhile, Carney argued in the House on June 3 that the policies his government has put in place are allowing for the creation of “a more resilient, more prosperous, stronger, more sustainable economy, and a more independent economy.”
He also said foreign investment in Canada is at twice the rate of any other G7 country, business investment is up 10 percent in machinery and equipment, and non-U.S. exports are on course to double.
StatCan said imports rose by 2.9 percent in the first quarter, primarily driven by imports of metal products and scrap metal, while exports declined by 0.1 percent and was led by fewer exports of passenger cars and light trucks. The federal agency also pointed to a decline in business investment and household savings.
