OTTAWA (LifeSiteNews) — Liberal government overspending, money printing, and a strain on the economy due to mass immigration have resulted in Canada entering its first recession since 2020.
Statistics Canada data shows that Canada’s economy fell by one percent in the fourth quarter of 2025 and then by 0.1 percent in the first few months of 2026. This means that, by definition, Canada has entered a recession.
For a country to be in recession, it must have two consecutive quarters of negative growth in the nation’s gross domestic product (GDP).
The recent data dump by Statistics Canada shows that Canada’s GDP stood at $2.56 trillion in the last quarter of 2025. The GDP was $2.56 trillion in the first quarter of 2026 but showing no growth.
The report highlighted negative economic growth patterns, with business investment in residential structures going down two percent. When it comes to exports, they fell by 0.1 percent in the first part of 2026 after going up 1.6 percent in the last quarter of 2025.
Overall, Canada was exporting fewer cars and trucks due to tariffs from the United States. There were, however, higher exports of oil and natural gas due to Iran-U.S. war.
Sylvain Charlebois, a professor at Dalhousie University’s Faculty of Management, gave a bleak overview of Canada’s economy, stating that “Canada is in a recession — the only G7 country currently in one.”
“Unemployment is up. Inflation is rising. Food insecurity is at a record high,” he noted.
As reported by LifeSiteNews, Liberal Prime Minister Mark Carney’s 2026 budget includes millions in taxpayer money for “SLGBTQI+ communities,” gender equality and “pride” safety.
Under former Prime Minister Justin Trudeau, the Liberals led the most pro-abortion government in Canadian history, spending more than $1 billion since 2020 to promote abortion and contraception at home and abroad.
Canadian taxpayers are already dealing with high inflation and high taxes due in part to Liberal government overspending and excessive money printing while admitting giving money to Ukraine at the expense of “taxpayers.’”
As recently reported by LifeSiteNews, Bank of Canada Governor Tiff Macklem gave a grim assessment of the state of the economy, essentially telling Canadians that they should accept a “lower” standard of living.