Canada’s recession outshines Australia’s per capita economy

In the last 18 months, the Canadian economy has faced significant challenges as it has tried to adapt to a trade war with the world’s largest economy, with which it shares an almost 9,000-km land border.

Since the start of the U.S.-Canada trade war in early 2025, the Canadian economy has faced significant challenges as it has tried to adapt to a business environment with tariffs as high as 50%, which has had a major impact on confidence and economic activity.

As of the latest Canadian national accounts data, the Canuck economy entered a technical recession by the narrowest of margins after experiencing two quarters of negative headline GDP growth, with the March quarter figure showing a contraction of less than 0.1% in unrounded terms.