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5 Things to Know Today: Canada Enters Recession, Oil Slips on Iran Ceasefire Talk

Saturday, May 30, 2026 — Your quick-hit Canadian financial briefing for the day. 1.Canada Officially Meets the Definition of a Technical Recession Statistics Canada confirmed Friday that real GDP contracted 0.1% on an annualized basis in Q1 2026 — following a revised 1.0% drop in Q4 2025 . That's two straight quarters of negative growth, which meets the technical definition of a recession. The miss was a big one: economists had forecast growth of 1.5% . The main culprits were a surge in imports (up 2.9%, largely gold), declining business capital investment (down 0.7% — its fifth consecutive quarterly drop ), and weakness in resource extraction and construction. On a per-capita basis, GDP actually edged up 0.2% as Canada's population shrank for the second quarter in a row. Not everyone is ready to call it a full recession: some economists note that three of the four weak months were isolated, and early April data points to a sharp 0.4% rebound . Still, the numbers ...
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Canadian Manufacturers of COVID-19 Protective Equipment Sue Ottawa for $5 Billion in Damages

 

Canadian manufacturers who produce masks and other protective equipment to combat COVID-19 are pursuing legal action against the federal government, seeking more than $5 billion in damages. Their claim alleges that Ottawa misled them regarding the purchase and promotion of their products.

In a statement of claim filed in Federal Court, the companies and their industry association assert that the government made “negligent misrepresentations” that led them to invest in personal protective equipment innovations, manufacturing, and production. These misrepresentations spanned a three-year period starting in March 2020. The companies and the Canadian Association of PPE Manufacturers contend that the government provided misleading information about markets, direct assistance, flexible procurement, and long-term support.

The Canadian government had communicated through an initiative called Canada’s Plan to Mobilize Industry to fight COVID-19 that there would be new measures to directly support businesses in rapidly scaling up production or retooling their manufacturing lines. However, despite identifying masks and respirators as vital items for an airborne pandemic, the government did not contract with the Canadian companies, invoking a national security exception for procurement. Furthermore, in June 2021, the government allegedly promised a 10-year contract with the industry association and businesses to compensate for not purchasing protective equipment from domestic firms.

The companies claim that these misrepresentations resulted in approximately $88 million in investment losses and a further $5.4 billion in projected lost market opportunities over a ten-year period. They emphasize that this promise came from the highest levels of the Canadian government and was propagated across all relevant departments.

As the court case proceeds, the federal government will have an opportunity to respond to these unproven allegations. The manufacturers’ “special relationship” with the government, born out of a duty of care to small- and medium-sized businesses, underscores the significance of this legal battle.

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