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Market Chatter: PM Carney Comments On Being Asked Is Canada In a Recession

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While Prime Minister Mark Carney acknowledged weaknesses in the Canadian economy on Tuesday, he also defended the federal government's economic agenda and did not use the word "recession."

"This government's been in the process of laying the foundations for a stronger, more resilient, more independent Canadian economy," Carney said Tuesday when asked directly by reporters in Ottawa about whether Canada is in a recession. "That process is settling in during that time as we make major investments, major changes to how the government operates, how we do major projects, how we have new trade agreements with other countries."

Carney's comments were his first on the issue after Statistics Canada data on Friday showed a slight contraction of gross domestic product (GDP) for two straight quarters, meeting the technical definition of a recession.

The prime minister said part of the economic slowdown is due to "clear decisions by the government," including reining in immigration and government spending. "There's some other choppiness in terms of how investment is happening, but we're also seeing at the same time, the foundations coming into place, settling in for that stronger, more resilient economy," Carney added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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