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Economic Viewpoint

Is Quebec’s economy going K-shaped? Not really

But wealth plays a greater role in economic success, straining the social contract

August 24, 2026
Florence Jean-Jacobs, Principal Economist • Sonny Scarfone, Principal Economist
  • Quebec’s economy isn’t particularly K‑shaped, especially compared with that of the United States. Consumer spending is still relatively well distributed between the different income groups.
  • After‑tax incomes remain more evenly distributed in Quebec than in Canada as a whole, though some disparities have widened since the pandemic.
  • Quebec’s household debt ratio is also lower than Canada’s, particularly among low-income households.
  • Wealth concentration remains more pronounced in Quebec than in Canada as a whole, although several indicators suggest it is gradually declining.
  • Wealth is playing an increasingly important role in the economy, and wealth growth has far outpaced income growth in recent decades, both in Quebec and other advanced economies.
  • In an average household, with two adults each earning the median income, it would now take decades of saving to reach the highest quintiles. This gap has widened significantly since the late 1990s.
  • This means that the wealth an individual begins with now plays a greater role in their economic advancement than it did in the past.
  • This change may be contributing to the disconnect we’ve observed: the economy may be resilient, but some segments of the population remain pessimistic.
  • The real risk is not necessarily that Quebec’s economy becomes K‑shaped. Rather, it’s that one of the pillars of our social contract may be gradually eroding: the idea that hard work, savings and effort are enough to build a better life for oneself.

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Is Quebec’s economy going K-shaped? Not really (PDF, 582 KB)
NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.