Finance Committee on June 4th, 2026

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, I think what my colleague, whom I have a lot of respect for, is getting at is whether the Canadian economy is resilient. In my response to him, I would say that the Canadian economy is indeed resilient.

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

I find it a bit shocking that you, as the finance minister, don't know what the definition is.

The widely accepted definition is two consecutive quarters of GDP decline. Would you agree with Friday's StatsCan report that Canada has had two consecutive GDP-declining quarters, yes or no?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, what my colleague is getting at, because I know he's looking at the data that came out.... He will be comforted in this assessment by the OECD, which released numbers yesterday saying that Canada would have the second-fastest growth in the G7 for 2026-27.

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

I would ask that you stop putting words in my mouth. I asked a simple question.

Statistics Canada—your own statistics agency—said on Friday that Canada has had two consecutive quarters of GDP decline. Would you agree with that report, yes or no?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, I think that when my colleague reads the report in more detail, he will see that there are some interesting elements. We see that business investment in machinery and equipment is up. We see that business investment in intellectual property is up. We see spending by government going down.

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

Business investment has declined for five straight quarters, but I'll move on since obviously the finance minister of the country, who helped to drive our economy into a recession, refuses to answer.

It's very clear from the minister's own stats agency that Canada is in a full-blown recession. Can the minister tell us if any other G7 country is in a recession?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, my colleague will be happy to hear—and Canadians, because I know they're watching this morning—that just yesterday, the OECD released numbers that show that Canada will have the second-fastest growth in the G7.

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

Since the minister brought up the OECD, can the minister tell us how many countries in the OECD are in a recession today?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, what really matters for Canadians is to see how we do compared to other G7 nations. If you look at the numbers, Madam Chair, you'll see we're growing twice—

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

I'll answer for the minister, since he refuses to answer.

[Ryan Turnbull, Liberal, Whitby, ON]

I have a point of order.

Mr. Hallan cannot answer for the minister. He's just—

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

The minister's not answering. It is my time.

[The Chair, Liberal, Karina Gould]

Thank you, Mr. Turnbull.

Mr. Hallan, you may continue.

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

Minister, in the entire OECD—in all developed countries—there are only two countries that went into a recession. They are Canada and Ireland. All other countries, especially the ones in the G7, are facing the exact same global pressures and tariffs, yet Canada is the only G7 country in a recession. Can you tell us why?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

I think that Canadians who are watching this morning understand very well the level of uncertainty we're in. If you look at the World Uncertainty Index published by the International Monetary Fund, you will see that today the uncertainty is almost equal to what we faced after the Second World War—

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

When all other countries are facing the same global pressures—

[Ryan Turnbull, Liberal, Whitby, ON]

I have a point of order.

I apologize to Mr. Hallan. I know it's his time, and I know that is a convention in committee, but when he constantly talks over the witness, the interpreters can't interpret.

[The Chair, Liberal, Karina Gould]

Thank you, Mr. Turnbull.

Mr. Hallan, you have the floor.

I would just ask both Mr. Hallan and the minister to not talk over each other.

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

Thank you, Chair.

Minister, it's very clear that as the finance minister you're completely dodging. You can't even admit to or say the word “recession”. We are in a full-blown recession according to your own stats agency. In fact, Canada is the only country in the G7 that's had three out of four quarters of economic decline.

This morning, just less than an hour ago, there was a scathing report by the PBO against you and your claims, especially when it comes to your fiscal anchors. The PBO has said, on one of your fiscal anchors, which was a declining deficit-to-GDP ratio, that you would have less than a 1% chance of meeting that fiscal anchor. Do you agree?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

I'd be happy to report that in the spring economic update, you will have seen that we have in fact projected a lower deficit—by $11 billion. This is what it is about. It's about restoring fiscal discipline—

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

That's fair enough, Minister.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

That's what Canadians expect from us at a time time like this. It's to be able to restore fiscal discipline.

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

Minister, after your spring economic statement, the PBO came out today with a scathing report that has totally debunked your claim that there will be a declining deficit-to-GDP ratio. She's saying that there will be less than a 1% chance you will meet that. Doesn't that mean your fiscal anchors are completely useless?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

I stand by our projections. They're based on the best available information from the experts in the Department of Finance.

Madam Chair—

[Jasraj Singh Hallan, Conservative, Calgary East, AB]

I'll take that, Minister, as meaning that you don't believe the PBO.