Canada’s economy showed signs of stagnation in the first quarter, contracting at an annualised rate of 0.1 per cent, according to Statistics Canada.This follows a 1 per cent annualised decline in the previous quarter, raising concerns about whether the country is edging toward a technical recession.

However, economists caution that the latest figure is small and could be revised upward, suggesting it may be premature to label the situation a full downturn.

The weak data strengthens expectations that the Bank of Canada may keep interest rates unchanged in the near term as it assesses the broader economic outlook, particularly amid ongoing trade uncertainty with the United States.

In corporate developments, Tim Hortons announced it will scale back its use of the Temporary Foreign Worker (TFW) program and instead aim to hire approximately 10,000 workers locally as it expands operations.

While the company plans to reduce reliance on the program and stop lobbying for its expansion, it still expects to use it in regions where hiring challenges persist, particularly rural and remote areas.Canada’s major banks reported strong second-quarter earnings, with all six institutions surpassing analyst expectations despite economic uncertainty.Most banks increased dividends, reflecting confidence in their financial resilience.CIBC stood out for selling its Caribbean operations for US$1.6 billion and making executive changes.

Elsewhere, Davie Shipbuilding continues to expand its role in Canada’s Arctic defence strategy, benefiting from international acquisitions and major federal contracts tied to icebreaker construction.

In a separate innovation story, a group of Canadian business leaders, including astronaut Chris Hadfield, have invested in a longevity-focused app called EverMe, which uses AI to synthesise health and scientific research, supported by $5 million in funding.