Quebec: Real GDP Growth Stalls
- Real GDP by industry was flat in July for the second consecutive month, after June's print was revised downward from 0.1% to 0.0%.
- The goods-producing sector sank 0.7% in July, its fifth successive monthly decline. However, the services sector continued to expand, gaining 0.2%.
- Just over half of the economy's major sectors (11 out of 20) contracted in July. Utilities, manufacturing and construction performed especially poorly. Details are provided in Table 1.
- In Canada, real GDP was also flat in July. However, for the first seven months of 2023, Canada saw cumulative growth of 1.9% compared to 0.5% for Quebec.
After holding up well in June despite some expected disruption in the sectors affected by the start of the wildfires, Quebec's economy was sluggish again in July. Although the forestry industry has suffered in some regions since early summer, particularly in terms of wood harvesting and processing, it has had little impact on Quebec's real GDP growth so far. The economic weakness has been caused by other sectors, particularly the construction industry, which is dragging goods-producing sectors down. Most service industries are continuing to grow, which could help Quebec avoid a decline in real GDP in the third quarter. However, the economy is likely to be disrupted by the St. Lawrence Seaway strike, which could hamper activity in many industries and take a further toll on Quebec's economy this fall.
Contact our economists
Elsewhere in Canada:
1-866-866-7000 This link will launch your default phone software.