world-economy

Canadian Economy Enters Technical Recession Amid Spending Slowdown

Canada's economy contracted in the first quarter of 2026, marking the country's first technical recession since 2020. Weak business and government spending drove the downturn, signaling broader economic headwinds affecting North American freight demand. The contraction comes as central banks globally grapple with persistent inflation above comfort levels. The European Central Bank raised rates for the first time since 2023 as inflation remained elevated across the eurozone's largest economies. Japan deployed record intervention spending of $73.6 billion to support its currency after the yen weakened past 160 per dollar. Consumer spending patterns showed mixed signals, with fuel demand posting record volumes as prices climbed. Economic growth pressures and currency instability are expected to influence logistics spending and cross-border trade flows throughout 2026.