Carney says economic plan ‘settling in’ after Canada enters recession territory

Prime Minister Mark Carney says the government’s plan to build up the economy is “settling in” as work continues on getting major projects built and expanding non-U.S. trade relationships.

These are the prime minister’s first public comments about the state of the economy after Statistics Canada reported two consecutive quarters of economic decline, which economists call a technical recession.

Read more:

• Canada slips into technical recession as economy stalls in Q1: StatCan
• Poilievre says Carney’s policies to blame for Canada dipping into recession territory
• Inflation rises to 2.8% in April thanks to higher gas prices: StatCan

Conservative Leader Pierre Poilievre, who called Monday for an emergency debate on the state of Canada’s economy, says there’s nothing technical about a recession as people struggle to afford food and shelter.

Many economists have dismissed the recession label, arguing the recent slump doesn’t have the depth or breadth to meet that bar.

Speaking on his way into the weekly cabinet meeting in Ottawa, Carney said the economic data will be uneven and show “weakness” as plans to reduce immigration and government spending take shape.

The prime minister says there are positive signs in the latest economic report, including increased business investment and household income growth outpacing inflation.

This report by The Canadian Press was first published June 2, 2026.