Canada Dips Into First Technical Recession Since Pandemic (3)

Canada edged into a technical recession as weak business and government spending drove a slight contraction in the first quarter, pointing to persistent slack in the economy amid US trade tensions.

Real gross domestic product fell by 0.1% on an annualized basis during the first three months of the year, Statistics Canada reported on Friday. That follows a 1% contraction in the fourth quarter, a downward revision from a 0.6% decrease previously reported by the federal agency.

The surprise decline in the first quarter stands in contrast with forecasters’ expectations. Economists surveyed by Bloomberg were anticipating a 1.5% annualized increase ...