COLUMN: On Parliament Hill – Canada slips into a recession

In the last election, Canadians were promised that Prime Minister Mark Carney would deliver the fastest-growing economy in the G7, and as of last Friday, Canada finds itself as the only G7 nation officially in a recession.

According to Statistic Canada, the country has met the very definition of a recession after the economy contracted for the second consecutive quarter.

Conservative Leader Pierre Poilievre responded bluntly, “The recession is real.”

He added that it translates to empty stomachs, empty grocery baskets, and empty bank accounts for many Canadians. “It means homeowners tossing and turning in bed at night, wondering how they will make the next mortgage payment.” That’s why Conservatives called on Carney to hold an emergency debate on the economy. In fact, had an emergency debate been scheduled, it would have given the Liberal government an opportunity to tell Canadians about their plan to reverse this recession and the resulting inflation. Sadly, it didn’t happen.

When asked about the recession in question period on Monday, Liberal members responded with excuses about U.S.-imposed tariffs—but the truth is other G7 countries facing tariffs and the effects of war in Iran have not fallen into a recession.

The problem is that Liberal governance and policies are not working, and several metrics suggest that Canadians should be concerned.

Canada has lost 112,300 jobs in the first three months of this year alone, with 45,800 more Canadians unemployed since Mark Carney became prime minister. Furthermore, Canada has the second highest unemployment rate in the G7. In the last four quarters, Canada is the only G7 country with a contracting economy.

Business investment has also fallen for the fifth consecutive quarter. Net investment fell by $20 billion, reflecting concerns about the economic competitiveness and investment climate

Equifax has reported that insolvencies are up year-over year by 19 percent. Mortgage delinquency rates have climbed 32 percent over last year, with 1.5 million Canadians having missed a debt payment in the first three months of this year alone.

Many Canadians are struggling. Canadians carry the highest household debt in the G7. One in four Canadians are now experiencing food insecurity. Foodbank visits have doubled since 2020, contributing to the Food Banks Canada recent grade of D+ for addressing poverty.

It’s time to reverse Liberal policies that have left Canadians facing mounting economic hardships and introduce legislation that will restore growth, prosperity and better grades. In Canada’s resourced-rich country, things should and can be different.

As Mr. Poilievre stated, “The only way out of this Liberal recession is to reverse the policies that caused it in the first place. And that is why we are calling for the prime minister to get back in the House of Commons and introduce a bill to reverse the economic policies his party has introduced.”

This downward trajectory in our economy needs to change.

Economists have also raised concerns about Canada’s economic performance. BMO chief economist Doug Porter recently stated that the economy has struggled to “make any headway” in the past year.

Still, some Liberal economists have dismissed Canada’s current economic state as only a technical recession—implying that the recession isn’t a real recession.

But as Laval University Professor of Economics Stephen Gordon has argued “Technical recessions are not a thing.” In other words, a recession is a recession.

Former NDP Leader Thomas Mulcair made a similar point siding with Mr. Poilievre on CTV Power Play. He compared the phrase “technical” recession to being stopped by the police for speeding and arguing with the officer that you were only “technically” speeding.

Conservatives agree. Losing a job, struggling to afford groceries, missing mortgage payments, or having to move because housing costs have become unaffordable are not technical problems. These are very real, challenges affecting families and communities across our country.

Conservatives have solutions to share with the government and had hoped to help the government forge a plan to help Canadians out of this mess by asking for an emergency debate. However, Speaker of the House Francis Scarpaleggia denied the request, “I’m not satisfied that this request meets the requirements of the standing orders at this time,” he said.

As Mr. Mulcair said, Conservatives are right to keep pressing on this issue for Canadians.

Canada’s economic decline is not inevitable. We are blessed with abundant resources, entrepreneurial talent and tremendous potential. Canadians deserve better.