Canada will launch its first sovereign wealth fund, with an initial federal contribution of C$25B ($18.3B) over three years, Prime Minister Mark Carney announced as part of a broader effort to build a more resilient and independent economy.

Prime Minister Mark Carney says the Liberals are “good fiscal managers” — and he’ll have the chance to prove it when the federal government tables its spring economic update Tuesday afternoon.

“Many of our former strengths built on our close ties to the United States have become our weaknesses,” Carney said. “The U.S. has changed. That’s their right and we are responding. That is our impera...