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Economic News

Quebec: Monthly GDP

Modest GDP Decline in May Despite Support From the Habs and F1

August 25, 2026
Sonny Scarfone
Principal Economist

Highlights

  • Quebec's real GDP declined by 0.1% in May, while real GDP for Canada External link. as a whole increased by 0.3%.
  • Goods-producing industries once again weighed on economic activity (-0.7%), particularly manufacturing (-1.2%) as well as electric power generation, transmission and distribution (-1.0%). In contrast, several service industries tied to tourism, recreation and cultural activities posted solid gains.
  • After five months, real GDP in 2026 stands 0.1% above the 2025 average (see graph). Nevertheless, it has changed little since reaching a peak in January 2025 and remains close to the levels observed in the fall of 2024.

 

Comments

The information and cultural industries sector stood out with a 1.8% increase, the strongest gain among the main components of the service sector (see table). The Montréal Canadiens' lengthy playoff run likely boosted activity among broadcasters and businesses tied to the entertainment industry. Accommodation and food services also maintained their momentum, rising 1.4% in May after increasing 1.9% in April.

The earlier scheduling of the Canadian Grand Prix in May likely contributed to the strength of the tourism sector. More broadly, tourism activity has remained strong across Quebec in recent months. As we recently noted in our weekly commentary, Domestic Tourism as a Response to US Protectionism External link., Quebec destinations have benefited from sustained interest from Canadian travellers amid a decline in trips south of the border.

Part of the weakness observed in the manufacturing sector this spring may be attributable to changes in tariffs on metal products. Other sectors showed little change.

Implications

Despite growth that has generally been subdued, and at times nonexistent, Quebec's economy continues to display a degree of resilience in a context marked by population contraction and the headwinds associated with the trade war. Some observers may even credit Jakub Dobeš' heroics for part of that resilience in May.

That said, the renewed trade tensions observed over the past week could lead us to revise our latest forecasts External link. downward, unless negotiations resume.

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.