FX.co ★ Canada GDP Stalls in Q1 2026, Marking Pause After Late-2025 Contraction

Canada’s economy flatlined in the first quarter of 2026, with gross domestic product (GDP) growth registering 0.0% quarter-over-quarter, according to data updated on 29 May 2026. The result represents a stabilization after a 0.2% quarter-on-quarter contraction recorded in the fourth quarter of 2025.

The figures, based on quarter-over-quarter comparisons, show that while the Canadian economy has halted its slide, it has yet to return to positive growth. The previous reading of -0.2% in Q4 2025 measured the change from the third to the fourth quarter of 2025, whereas the latest 0.0% print captures the change from Q4 2025 to Q1 2026.

The move from mild contraction to zero growth may signal that the worst of the downturn has passed, but it also underlines the absence of clear momentum at the start of 2026. Investors and policymakers will be watching upcoming quarters closely for signs that activity can transition from stagnation toward a firmer recovery path.