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Quebec and Ontario Economic News

Quebec: Real GDP Drops 1.9% in Q3 as the Recession Appears to Have Begun

December 22, 2022
Hélène Bégin
Principal Economist

The Q3 drop-off in economic activity probably marks the beginning of the recession in Quebec. We’ll know for sure if the next few quarters are negative as well. With September’s sharp decline in GDP, it looks like we’ll see a contraction in Q4 too. But unlike in past cycles, the labour market is in great shape. Unemployment bottomed out at 3.8% in November and shouldn’t edge up much given the severe labour shortage in most sectors and regions of Quebec. So while it appears the recession is here, Quebec’s robust job market should limit the economic damage.