What is stagflation? A closer look at the economic double kiss of death – National [Video]

Trade war fears loom large over Canadians and uncertainty continues over U.S. President Donald Trump’s tariffs, which threaten to upend global trading systems.

While inflation in Canada cooled slightly in March, fears of a recession remain. A report by the Canadian Federation of Independent Business released on Thursday (CFIB) forecast “muted growth” for the Canadian economy in the first quarter of 2025 and a “significant contraction” in the second quarter.

A recession is classified as a period of two consecutive quarters in which an economy contracts.

The report suggests that the Canadian economy grew by a meager 0.8 per cent in the first quarter but will contract in the second quarter. Recessions often lead to stagnating economic growth.

The CFIB report also said inflation in Q1 rose by 2.4 per cent but will rise further to 2.7 per cent in Q2 — well above the Bank of Canada’s target range of two per cent.

The combination of …