Canada has fallen into a recession, dragged down by falling energy prices and economic troubles in China. Canada's national statistical agency, Statistics Canada Tuesday reported that the Canadian economy retreated at an annual pace of 0.5 per cent from April through June after sliding 0.8 percent the first three months of the year. Two consecutive negative quarters are the technical definition of a recession. Canada is the world's 11th-biggest economy and the United States' biggest trading partner. The Canadian economy suffered far less damage from the financial crisis and Great Recession than its southern neighbour. The economic news could spell trouble for Prime Minister Stephen Harper, whose Conservative Party already faced an uphill battle ahead of the October 19 election. However, Harper, campaigning for a fourth term on a record of economic growth, refused to recognize that Canada is in a recession.