2024-08-27 16:48:47
Quebec’s GDP rose 0.1% in May, following a sharp 0.5% increase in April.
Although more modest, May’s progress suggests that Quebec is continuing to grow, while the Canadian economy is showing signs of slowing. In April, growth came from the goods sector, while the services sector remained stable.
National Bank economist Daren King noted that reduced power generation by Hydro-Quebec to boost low water levels in reservoirs weighed on GDP in May.
Since 2024, Quebec’s GDP has increased by 0.5%. Desjardins economist Hélène Bégin believes that the Quebec economy appears to be resilient, but there is also a downside. “The labor market continues to deteriorate moderately,” she emphasized. The fragile financial situation of many companies has limited recruitment and sometimes even led to layoffs. “
Desjardins economists said the job market will remain subdued in the coming months “while the decline in the Bank of Canada’s key interest rate is sufficient to provide relief to highly indebted businesses and households.”
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