2023-09-25 04:00:00
Quebec remains the undisputed champion of business bankruptcies in Canada. In fact, over the past year, no less than 60% of bankruptcies in the country have been caused by companies established in Quebec.
These data come from the latest monthly statistical report from the Office of the Superintendent of Bankruptcy (OSB), published last August. When compared to the provinces, Quebec stands out both for its high number of bankruptcies and for its disproportion to its demographic weight in Canada.
The BSF revealed, for example, that a total of 3,097 companies declared bankruptcy in Canada between July 2022 and 2023. However, during this same one-year period, 1,879 business bankruptcies were recorded in Quebec, the equivalent of 61% of all bankruptcies in the country.
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This figure is all the more surprising given that with its 8.8 million inhabitants, Quebec only accounts for 23% of the Canadian population. For comparison, its neighbor Ontario, with no less than 15.6 million inhabitants or 40% of the Canadian population, recorded only 816 bankruptcies, less than half of those recorded in Quebec.
The Palme d’Or in Quebec
The question was raised in the National Assembly last week by MP Frédéric Beauchemin, liberal critic of Finance and Economy. The former CEO and head of capital markets at Scotiabank stung Minister Pierre Fitzgibbon, accusing him of appearing proud to see Quebec obtain “the palm of gold for bankruptcies in Canada”.
The reasons that might explain this situation are not clear. Many economists from whom we asked for explanations admitted that they had a poor understanding of the phenomenon. A composition of the entrepreneurial fabric distinct from that of other provinces and a business environment less favorable to businesses are among the avenues mentioned.
“Quebecers are having a hard time,” said MP Beauchemin in an interview with The newspaper. The figures show that they are forced to make difficult choices during this period of high inflation. Several companies are failing. And while the CAQ spends a fortune to welcome foreign companies, we let our SMEs die in almost complete indifference. This is all sad. »
-With the contribution of David Descôteaux
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