gdp-0520 This is the first time the Canadian economy experienced two consecutive quarters of negative growth since 2020. (Credit: Peter J. Thompson/National Post)

It’s Friday, May 29. Here are the top stories we’re following today.

Canada’s economy shrinks again, raising spectre of recession

Canada’s real gross domestic product unexpectedly contracted slightly on an annualized basis in the first quarter of 2026, but economists stopped short of calling it a recession despite meeting the technical definition of two consecutive negative quarters.

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 Despite the negative gross domestic product surprise, markets are still pricing in a Bank of Canada rate cut in 2026. Despite the negative gross domestic product surprise, markets are still pricing in a Bank of Canada rate cut in 2026.

Is a technical recession enough to spur the Bank of Canada to cut interest rates?

Despite the negative gross domestic product surprise, markets are still pricing in a rate cut in 2026. Here’s what the GDP data mean for the economy and the Bank of Canada.

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 Bank of Nova Scotia earlier this week beat analysts’ expectations for its second-quarter earnings, with results driven by stronger profits in its capital markets, wealth management and Canadian businesses. Bank of Nova Scotia earlier this week beat analysts’ expectations for its second-quarter earnings, with results driven by stronger profits in its capital markets, wealth management and Canadian businesses.

Scotiabank expands presence in the U.S. by buying Texas bank

Bank of Nova Scotia has inked a deal to acquire Maple Financial Holdings Inc., a Texas-based company that runs a commercial bank.

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 A Costco Wholesale Corp. store in in Mississauga, Ont. A Costco Wholesale Corp. store in in Mississauga, Ont.

Costco says it will return U.S. tariff refunds to members ‘in some form’

Costco Wholesale Corp. says it will return tariff refunds to its members if and when they are paid back by the United States government.

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 An investment strategy should be based in part on projected withdrawals but also risk tolerance and tax strategy. Scenario planning with a professional financial planner may help. An investment strategy should be based in part on projected withdrawals but also risk tolerance and tax strategy. Scenario planning with a professional financial planner may help.

Can Greg, 61, with adopted younger kids, afford to retire on $4.2 million

Consolidating investments may help Greg have better visibility to plan his investment strategy and for retirement withdrawals in a tax efficient manner, expert says.

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