Quebec economy: the next few months will be difficult, according to Desjardins

Quebec's economy: the next few months will be difficult, according to Desjardins

UPDATE DAY

Quebec households are not about to see the light at the end of the tunnel with inflation and the rise in the cost of living since economic activity in Quebec is expected to remain flat until mid -2023, according to a Desjardins analysis. 

“Quebec's economy will be shaken by household difficulties, a drop in business investment and exports over the quarters,” he said.

The province had experienced a period of strong growth before slowing down, a decline that is expected to continue in the coming quarters. The residential real estate market should thus continue to slide, while the rise in interest rates could slow down consumers and businesses.

Added to this are high inflation and the difficulties of the economy world, which will have repercussions on exports and industrial investments.

“Economic activity in Quebec will thus be almost neutral until mid-2023 and the line will be thin between a very weak growth and a slight decline in real GDP”, it was established.

Support measures put in place by Ottawa should, however, come to the aid of households to cope with this increase in the cost of living .

According to Desjardins, the persistence of inflation “remains the main risk for the global economy”, forcing many central banks to continue raising their interest rates.

Recall that the inflation rate was 7% for the month of August 2022 compared to the previous year nt and that the Consumer Price Index increased by 7.1% in Quebec from one year to the next.