Just how much trouble is Canada's economy in?

Just how much trouble is Canada's economy in?Image source, AFP via Getty ImagesByJessica MurphyCanada digital editorPublished27 June 2026Prime Minister Mark Carney has promised to reboot Canada's economy, building it into the "strongest in the G7".He has spent weeks travelling overseas in the last year seeking to drum up business interest in Canada as an investment destination.But there is no doubt the country's economy is struggling, and from tariffs on certain industries to younger Canadians struggling to find work or buy a home, some Canadians are feeling the pain more than others.Five charts help illustrate the state of Canada's economy - and how it's performing compared to other wealthy nations.1. Technical recession - but it could be worseEconomic growth in Canada this year is forecast to be 1.6%, according to the International Monetary Fund (IMF). That's behind the US but ahead of European G7 partners.As the country's economy recovers from the slowdown triggered by US tariffs, the Organisation of Economic Co-operation and Development (OECD), an influential global policy group, projects a modest improvement in gross domestic product (GDP) - growth of 1.7% - in 2027.Earlier this month, data from the country's statistics agency said Canada had slipped into a technical recession - two consecutive quarters of GDP decline, in late 2025 and early 2026. "The government is responding in real time to shifting global economic volatility and broad-based supply chain disruption with a serious plan to grow exports, create jobs and invest in productivity forward projects," said John Fragos, a spokesman for Finance Minister François-Philippe Champagne. Economists cautioned against panic, saying the country is likely to avoid a prolonged downturn especially given the small decline. "Whether one chooses to divine the fact that we're in a recession or not really does miss the point," said Jeremy Kronick,...