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Canada's recession worsens due to weak government leadership, hitting investment and jobs hard.

Market News
02 Jun 2026
Yanik Guillemette
View Source
Bearish
pluang ai news

Canada is in a technical recession with economic contraction in three of the last four quarters, the worst among G7 nations. Entrepreneur Yanik Guillemette criticizes Ottawa's weak leadership and decision paralysis, which erodes business confidence and slows investment. Key impacts include a 0.7% drop in business investment, a $20 billion net capital outflow, and loss of 112,300 jobs, pushing Canada to the second highest G7 unemployment rate. Rising insolvencies, mortgage payment delays, and increased reliance on food banks highlight growing financial and social distress. Without stronger government action, the recession risks becoming a deep structural crisis.

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