Statistics Canada says the Canadian economy grew by 0.1% in February.
The federal agency's preliminary estimate suggests real gross domestic product grew at an annualized rate of 2.5% in the first quarter.
The February figure came in lower than was expected by Statistics Canada as wholesale and retail trade as well as manufacturing all contracted.
The Canadian economy is expected to stall this year and potentially enter a recession as high interest rates weigh on consumers and businesses.
The federal agency's preliminary estimate for March suggests the economy contracted by 0.1%.
The dip in real GDP is expected to be driven by continued declines in wholesale and retail trade, in addition to mining and quarrying.