First-quarter contraction signals weaker-than-expected economic activity amid prior quarter’s 0.6% decline.
Canada’s economy contracted 0.1% in the first quarter, falling short of the 1.5% growth forecast. The decline follows a 0.6% drop in the previous quarter, marking a second consecutive period of negative growth.
March GDP fell 0.1%, missing expectations of flat growth, after a 0.2% rise in February. Analysts had anticipated a rebound, but weak domestic demand and external pressures weighed on output.
Markets showed muted reaction, with focus shifting to potential monetary policy adjustments amid signs of economic softening.