The Quebec economy stood still for a second consecutive month in July, reports the Institute of Statistics of Quebec (ISQ).
This is the first time since 1997 that Quebec’s GDP has shown 0% growth for two months in a row, notes National Bank economist Daren King. “If there is a positive point to this phenomenon, it is that Quebec’s economy has done better over this period than that of the country as a whole,” he analyzes.
According to the ISQ, the goods sector fell 0.7% in July, its fifth consecutive monthly decline, which has never been seen outside of recessionary periods. The services sector saw an increase of 0.2%.
Since the start of the year, from January to July, Quebec GDP growth stands at 0.5%, which is well below the Canadian average of 1.5%.
Desjardins economists, who have revised downward the economic growth of the Canadian provinces, expect the performance of the Quebec economy to be one of the weakest in Canada in 2023.
Despite the increase in population, Quebec’s population growth is the lowest among Canadian provinces, with the exception of Newfoundland, explain economists Marc Desormeaux and Hélène Bégin. “The economy is therefore less supported by households,” they specify.
Also, residential construction is experiencing one of the largest declines in Canada, with a decline of 40% since the start of the year.
