It's official:
Canada has unexpectedly entered a technical recession for the first time since the pandemic lockdowns in 2020.
Real GDP in Canada fell -0.1% in Q1 2026 following a -1.0% contraction in Q4 2025.
This marks two-straight quarters of GDP contraction for the first time in six years.
Economists had expected Q1 GDP growth of +1.5%, yet the economy suddenly contracted.
The weak GDP data coincides with a weak job market as well, as the Canadian economy is likely to remain under pressure amid ongoing US tariffs.
Meanwhile, the household saving rate fell to 3.5%, reaching its lowest level since the Q1 2024 as spending rose faster than incomes.
Canada is facing a major economic slowdown.
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Remember the imbalance I discussed on $NQ ?
We just reached it today.
Imbalances are designed to flush out everyone before the move. Curious how this unfolds.
Last week $NQ closed at a key support level.
- There's a bullish imbalance still there for the taking this week at 25, 600
- Curious if we retrace the whole move up first this week
- Invalidated on break of 23, 750