BANFF, Alberta—Bank of Canada Gov. Tiff Macklem said Thursday the economy risks weakening further unless there is a relatively quick resolution to the U.S.-Canada trade conflict.

Following the end of the Group of Seven meeting of finance and central bank chiefs, Macklem said he expects first-quarter gross domestic product data to show weak consumer spending and business investment, which will be partly offset by a buildup in inventories as companies sought to escape retaliatory tariffs on U.S. imports.