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Economic Viewpoint

Why Is Quebec’s Economy Trailing the Rest of Canada’s?

August 17, 2023
Hélène Bégin, Principal Economist • Maëlle Boulais-Préseault, Economist

For some time now, Quebec’s economic data has consistently come in weaker than the data for Canada as a whole. Despite a highly diversified industrial structure that typically works to its advantage, Quebec’s economy has underperformed so far this year. The benefits of the post-pandemic rebound in auto production and the strength of the oil sector are concentrated in other provinces. In addition, this year’s wildfires hit Quebec’s economy particularly hard since the province is the country’s main forestry producer. All of the above have resulted in a gloomier economic outlook for Quebec than for the entire country in 2023. The province’s less favourable demographic trends have certainly held it back. But in this Economic Viewpoint, we identify factors in Quebec’s major industrial sectors that widen the gap.