Canada's economy saw two consecutive quarters of gross domestic product (GDP) decline in late 2025 and early 2026. Inflation in Canada was 3.2% in May, an increase from 2.8% in April. The country's unemployment rate stood at 6.6% in May, with youth unemployment at 13.4% during the same period. Prime Minister Mark Carney stated the Liberal government has been "laying the foundations for a stronger, more resilient, more independent Canadian economy." He added that "the process is settling in during that time as the major investments, major changes to how the government operates, how we do major projects, how we have new trade agreements with other countries." Carney has promised to make Canada's economy the "strongest in the G7."

The Liberal government intends to double Canada's non-U.S. exports over the next decade. This plan involves expanding trade relationships in Europe and Asia. The government also plans to fast-track major infrastructure projects.

James White, President and CEO of Wellmaster, stated his company's sales are down by 20% since tariffs between the U.S. and Canada began last year. He added, "I'm being pulled down in my ability to make investments in my people and my technology and my equipment." More than 70% of Canadian exports are directed to the U.S. market. The White House has enacted tariffs ranging from 15% to 50% on Canadian steel, aluminum, and copper. Additionally, 25% tariffs have been imposed on vehicles from Canada. Wellmaster's profitability relies 60% on access to the U.S. market.

Economic growth in Canada is projected to be 1.6% this year, according to the International Monetary Fund. The Organisation for Economic Co-operation and Development projects Canada's gross domestic product will grow by 1.7% in 2027. Canadian households carry the largest debt burden among G7 nations. A recent Angus Reid Institute poll indicated that 61% of respondents consider the cost of living their primary concern.