Is Canada in a recession? What to know after a volatile week of economic data

OTTAWA - There was one word on the lips of many Canadians economists, politicians and journalists this past week: recession.

Recent economic data has painted a mixed picture of Canada's economy, and some interpretations make the argument for a recession.

Here's what you need to know about the state of Canada's economy.

Why are people talking about a recession?

Saying ‘no’ to AI data centre a huge win for Manitoba — and Kinew

It’s a tale of two provinces — and two artificial intelligence data centre mega-projects.

Quebec aluminum smelters more resilient than expected despite U.S. tariffs

MONTRÉAL - A major aluminum association in Canada says the impact of U.S. tariffs on the industry has been less dire than expected.

Jean Simard, president and CEO of the Aluminum Association of Canada, says the industry is operating at 95 per cent capacity.

“No slowdown, no layoffs," Simard said in an interview with The Canadian Press on Thursday about the effect of 50 per cent U.S. tariffs on aluminum.

“It’s less painful than we anticipated," Simard said. "The problem, fundamentally, is the lack of visibility into the future. We’re in a world of total uncertainty."

SCO-led app Miikahnah Connect links Indigenous workers to labour demand

As Jay Sanderson turned to face his job site, evidence of his work stared back — plywood replacing windows at the former Hudson’s Bay Co. flagship store downtown.

Lately, he’s been in the basement.

He’s working with several First Nations members on the construction of Wehwehneh Bahgahkinahgohn, the Southern Chiefs’ Organization’s revamp of the old Bay site.

Construction on the facility — which will include housing and a childcare centre, among other things— is slated for another two-and-a-half years, according to SCO’s grand chief.

Premier pulls plug on proposed AI data centre

Premier Wab Kinew says a massive artificial intelligence data centre southeast of Winnipeg will not go ahead.

“The very limited economic benefits for this project do not outweigh the serious environmental concerns and the unique rural way of life that people in the region enjoy,” Kinew told reporters at the Manitoba legislature on Thursday.

The public should be skeptical about “hyperscale” data centres that are being proposed in many jurisdictions, he added.

“It’s very clear AI is transforming our economy and our society,” Kinew said. “But I think Manitobans want that to happen in a way where AI serves us and we’re not servants of AI.”

Creative industry slams government on move to dismantle CanCon obligations for streamers

TORONTO - Groups representing writers and filmmakers are criticizing the government's move to dismantle Canadian content obligations for U.S.-based streamers.

The Directors Guild of Canada, ACTRA and the Canadian Media Producers Association issued statements saying the government is cowering to pressure from Big Tech, and that it risks creating "long-term uncertainty" for the Canadian film and TV industry.

On Wednesday, Culture Minister Marc Miller announced that Ottawa is asking the broadcast regulator to review a recent order that would require foreign streamers to invest 15 per cent of their revenues in Canada into Canadian programming.

Miller also said that the entire broadcasting framework needs a rethink, and that the government will invest $600 million into the audio and audiovisual sector annually in the meantime.

New $2.3B federal AI strategy looks to close ‘adoption gap,’ build public trust

OTTAWA - Ottawa wants to increase Canadians' use of artificial intelligence — and it plans to do so through free AI training and legislation to tackle concerns like surveillance pricing and chatbot safety.

Announcing the government's new AI strategy in Toronto on Thursday, Prime Minister Mark Carney said "globally, Canada ranks near the bottom of countries in AI training, in literacy and trust."

The long-awaited AI strategy says Canada has "a major adoption gap." It says closing the gap in training and literacy "is the foundation on which everything else depends."

A new literacy initiative will offer entry-level AI training to all Canadians and the government will ensure "all post-secondary students have access to trusted AI agents," the document says.

Ottawa tells CRTC to change course on increasing streamers’ financial contributions

OTTAWA - Ottawa is directing the CRTC to back down on its recent decision to triple streamers’ financial contributions to Canadian content, and will instead provide $600 million to the sector, Culture Minister Marc Miller said Wednesday.

The decision comes after the Motion Picture Association, the U.S. group representing streamers, called on cabinet to reconsider the current approach, and after the U.S. ambassador to Canada called for the policy to be rescinded.

The CRTC said in May it would require large streaming services like Netflix to contribute 15 per cent of their Canadian revenues to Canadian content. It made the decision as part of its work to implement the Online Streaming Act.

Asked whether the decision is another concession to the U.S. as Canada seeks renewal of the continental trade pact, Prime Minister Mark Carney said Wednesday the government was looking at how much the new policy would cost Canadians.

Canadian, U.S. stock markets notch new record highs amid continued AI boom

TORONTO - Stock markets in Canada and the U.S. reached new highs, powered by gains in energy and AI, respectively.

Theresa Shutt, chief investment officer at Harbourfront Wealth Management, said themes around higher risk appetite driven by “AI fervour” helped lift the U.S. market. She said this was somewhat counterbalanced by lingering tensions between the U.S. and Iran and concerns that the market has risen too high.

The S&P/TSX composite index was up 434.57 points at 35,169.46.

In New York, the Dow Jones industrial average was up 228.91 points at 51,307.79. The S&P 500 index was up 9.82 points at 7,609.78, while the Nasdaq composite was up 7.09 points at 27,093.90. The S&P 500 rose 0.1 per cent after drifting between small gains and losses through the day.

Canada sends letter to U.S., Mexico calling for renewal of trade agreement

WASHINGTON - Canada-U.S. Trade Minister Dominic LeBlanc said he had a positive meeting with his American counterpart in Washington a day after sending a letter to the United States and Mexico recommending that the three countries renew the continental trade pact.

LeBlanc said he presented specific proposals to United States Trade Representative Jamieson Greer and talked about long-standing issues Americans have raised about Canada.

"We discussed how we can work together on a number of issues that strengthen the competitiveness of the North American economy," LeBlanc said at the Canadian Embassy on Tuesday following the meeting with Greer.

The letter from LeBlanc to Greer and Mexico's secretary of economy, Marcelo Ebrard, is a requirement of the mandatory review of the Canada-U.S.-Mexico Agreement on trade, known in Canada as CUSMA.

Carney discussed artificial intelligence with Pope Leo

OTTAWA - Prime Minister Mark Carney told Pope Leo XIV on Friday that Canada wants to take a leadership role in the responsible development of artificial intelligence.

The conversation happened days after the Pope called for robust regulation of AI.

"They discussed the imperative that AI must serve humanity, beginning with the protection of the individual," the Prime Minister's Office said in a release.

"Prime Minister Carney expressed Canada’s desire to lead internationally on responsible AI and tools to benefit the global community."

Mushroom producers face ‘worrying’ duties

Prices may mushroom for American fungi lovers — and the company behind a Manitoba grower is contesting new duties disrupting the industry.

Loveday Mushroom Farms ships roughly 10 million pounds of mushrooms annually from its Oakbank plant to the United States. It accounts for one-fifth of the mushrooms parent company South Mill Champs grows in Canada and sells south of the border.

“We’ve got a good customer base in the U.S. and Canada,” said Lewis Macleod, South Mill Champs chief executive.

But the American base will likely be hit with higher mushroom prices: South Mill Champs plans to pass a new duty to customers, upping the cost of its portabellas and shiitakes.

Chinese online retailer Temu hit with $232 million fine over unsafe toys and electronics

LONDON (AP) — Temu was hit with a 200 million euro ($232 million) fine Thursday after a European Union investigation found the Chinese online retailer failed to protect consumers from illegal products like toxic or hazardous toys and unsafe electronics.

The 27-nation EU's fine follows preliminary findings last year that Temu was exposing consumers to a high risk of products sold on its platform like baby toys and small electronics that didn't comply with EU consumer safety rules.

The bloc's executive arm issued the penalty under the Digital Services Act, or DSA, a wide-ranging rulebook that requires online platforms to do more to keep internet users safe from harmful content or dodgy goods, under the threat of hefty fines.

It's the second time Brussels has issued a fine under three-year-old DSA, following a $120 million penalty last year for Elon Musk's social media site X.

Some brands say their jeans are eco-friendly. Here’s how to find a pair that’s actually sustainable

NEW YORK (AP) — Your favorite pair of jeans may have traveled around the world through cotton farms, dye houses, wash facilities and factories before ending up in your closet. The denim may have never been worn but it is stonewashed, sanded, chemically faded or laser-treated to look like it.

Those processes can require significant amounts of water, energy and chemicals — part of the reason denim has become a growing target for sustainability efforts across the fashion industry, which is among the world’s biggest producers of greenhouse gas emissions.

Brands are responding to wider awareness by marketing their jeans as “sustainable,” touting regenerative cotton, recycled fibers and low-water manufacturing techniques. But figuring out if that's true is far more complicated. For one, sustainability is difficult to define — and there isn't a universal set of standards.

Last week, Chinese fast-fashion giant Shein acquired Everlane, a brand known for transparency and sustainability efforts, highlighting broader tensions over scale and affordability. Improvements in sustainable processes typically cost more, making it difficult for companies with fast production cycles and low prices to adopt them widely. Consumers are left to navigate a complicated web of tradeoffs involving farming practices, chemical processes, labor ethics and a wide range of prices.

Reported Germany-Canada LNG deal would bolster investment case for Ksi Lisims: Eby

A deal to supply Canadian liquefied natural gas to Germany would be a key step toward the partners behind the Ksi Lisims project deciding to go ahead with their $10-billion West Coast plant and export terminal, British Columbia Premier David Eby said Tuesday.

Eby made his remarks after multiple outlets reported German firm SEFE is poised to buy gas shipped from Ksi Lisims and a day before federal Natural Resources Minister Tim Hodgson is scheduled to make an announcement about international energy exports in Vancouver.

The B.C. premier said his government has long been supportive of the project being pursued by the Nisga'a Nation alongside Houston-based Western LNG and Rockies LNG, a group of Canadian natural gas producers. The companies and the First Nation declined to comment on Tuesday.

"We look forward to celebrating the formal announcement of this with the Nisga'a, with the federal government. It's an example of the work we're doing together and we're super proud of it," Eby told reporters after a meeting with western premiers in Kananaskis, Alta.

CRTC triples streamers’ financial contributions to Canadian content

OTTAWA - Large TV streaming services like Netflix must contribute 15 per cent of their Canadian revenues to Canadian content, the federal broadcast regulator said Thursday.

That’s three times the five-per-cent initial contribution requirement the CRTC set out in 2024, which is being challenged in court by major streamers, including Apple and Amazon.

Contribution requirements for traditional broadcasters, which currently pay between 30 and 45 per cent, will be lowered to 25 per cent.

"The total contributions are expected to stabilize the funding at more than $2 billion in support of Canadian and Indigenous content, such as French-language content and news," the regulator said in a press release.

Small businesses’ capacity to hire youth being constrained: CFIB survey

TORONTO - A weaker economy and rising costs are leaving little room for small businesses to hire and train inexperienced youth, a new report suggests.

While small businesses remain the "training ground" for many young people entering the workforce, a survey by the Canadian Federation of Independent Business says small businesses are facing challenges from weak demand and rising payroll costs.

That's leaving many business owners with fewer resources to hire and train young workers.

"For many small businesses, taking a chance on someone with no experience, especially when training requires considerable time and effort, is simply not feasible in the current climate," the report said.

Only unions consulted about jobs deal for provincial builds: industry

The Manitoba government is being accused of consulting only with a union collective before adopting a jobs policy that governs contracts involving the construction of public projects, including four new schools.

Construction industry associations representatives said Tuesday they learned through a freedom-of-information request that the government met only with Manitoba Building Trades, which proposed a labour framework in July 2025. The two parties discussed the jobs agreement in August, and it was signed 13 days later, the associations said.

They now want the provincial ombudsman to pause the Manitoba Jobs Agreement and conduct a review.

“I was extremely disappointed that there was little rigour in the negotiation,” said Darryl Harrison of the Winnipeg Construction Association.

Alberta’s timing targets for West Coast pipeline ‘best-case scenario’: CIBC analysts

CALGARY - The targeted timeline the Alberta government set out for construction to begin on a potential new West Coast oil pipeline is ambitious, with many obstacles yet to clear, analysts at CIBC World Markets wrote in a recent report.

The province aims to submit a proposal to the federal major projects office by July 1, have it designated a project of national interest by Oct. 1 and get shovels in the ground as early as Sept. 1, 2027. Oil could begin to flow around 2033 or 2034, a provincial official told a media background briefing last week.

"While we are encouraged by the continued sense of urgency, we would characterize these timelines as optimistic and reflective of a best-case scenario," analysts Robert Catellier and Rogan Anantharajah wrote in a Monday industry update.

The Alberta government laid out those targets Friday after it and Ottawa finalized one of the last outstanding elements of the energy accord they signed late last year: an agreement on how the market price on carbon is to gradually increase to $130 a tonne by 2040.

U.S. says it’s pausing long-standing military board with Canada

WASHINGTON - The U.S. undersecretary of defence for policy said Monday that the United States is pausing a long-standing military board, claiming "Canada has failed to make credible progress on its defense commitments."

In a post on social media, Elbridge Colby said his department is pausing the Permanent Joint Board on Defense "to reassess how this forum benefits shared North American defense."

The board was established in 1940 and is an advisory forum for U.S.-Canada bilateral defence co-operation.

Colby said the United States "can no longer avoid the gaps between rhetoric and reality" in the post, where he shared a link to a transcript of Prime Minister Mark Carney's January speech at the World Economic Forum in Davos.

$61-M investment in high-speed Internet planned for northern First Nations

More homes on remote Manitoba First Nations will have access to high-speed Internet that most Canadians take for granted thanks to $61 million in new federal funding.

“Your communities have been living way too long without internet,” federal Northern and Arctic Affairs Minister Rebecca Chartrand told a gathering at Wasagamack Anisininew Nation Thursday. The MP for northern Manitoba said the four projects will deliver modern, reliable internet to 2,309 households.

“This really is a public safety issue and an equity issue,” Chartrand said in the community 600 kilometres north of Winnipeg that’s accessible by air, water and winter road.

“The lack of broadband has been a public safety failure. When families can’t call for help or nurses can’t access files or lives are at risk when you’re travelling roads without phone service, without internet,” she said.