Canada's real gross domestic product unexpectedly contracted on an annualized basis in the first quarter of 2026, marking the second consecutive quarter of negative growth. This meets the technical definition of a recession, the first such occurrence since 2020. However, economists have stopped short of declaring a full-blown recession. Despite the negative GDP surprise, markets continue to price in a Bank of Canada rate cut later in 2026.
Scotiabank Expands South with Texas Bank Acquisition
Bank of Nova Scotia has agreed to acquire Maple Financial Holdings Inc., a Texas-based company that operates a commercial bank. The deal expands Scotiabank's presence in the United States. The bank earlier this week beat analysts' expectations for its second-quarter earnings, driven by stronger profits in capital markets, wealth management, and Canadian businesses.
Costco to Return Tariff Refunds to Members
Costco Wholesale Corp. announced it will return tariff refunds to its members in some form, if and when those refunds are paid back by the United States government. The policy applies to tariffs imposed on imported goods, and the company aims to pass the benefits to its membership base.
Retirement Planning: Can Greg Retire on $4.2 Million?
A 61-year-old individual with adopted younger children is seeking advice on whether he can afford to retire with $4.2 million in savings. Financial experts suggest consolidating investments to improve visibility for planning an investment strategy and retirement withdrawals in a tax-efficient manner. Scenario planning with a professional financial planner may help determine the feasibility of early retirement.
These stories highlight key economic developments in Canada, including GDP contraction, banking expansion, consumer tariff policies, and personal finance challenges.
