Even if it was avoided in 2022, a recession remains likely in Quebec, and in Canada, in 2023, estimates an economist.
Indeed, Quebec’s real GDP – having changed course in the last quarter – experienced an unexpected increase due to “an impressive recovery in household consumption expenditure and an acceleration in public administration investment,” indicated Hélène Bégin. , Senior Economist at Desjardins.
However, she specified that because of the high interest rates which continue to weigh on households and businesses, it will be difficult for Quebec to “escape the recession this year”.
“Unsurprisingly, the residential sector continues to fall as the high level of interest rates continues to cool all market segments. The decline in business investment that was anticipated is well and truly under way. The financial situation of indebted companies is deteriorating, which encourages them to be cautious,” indicated Ms. Bégin.
“Exports are starting to feel the effect of the difficulties in the global economy,” she added.