Quebec’s gross domestic product fell for the second quarter in a row in the third quarter, signaling that the economy has officially entered recession.
The 0.2% decline in GDP in the third quarter follows a 0.4% decline in the previous quarter. According to the Institute of Statistics of Quebec, at an annual rate, the decline in the economy reached 0.8%.
Two consecutive quarters of decline represent the technical definition of recession. Quebec’s economy has slowed significantly since the start of the year, and this slowdown has accelerated in recent months. For the first nine months of 2023, Quebec’s real GDP was 0.3% higher than the same period in 2022.
The Canadian economy also slowed in the third quarter and its growth after the first two months of the year was 1.5% compared to the same period last year.
In Quebec, the main sectors responsible for the decline in real GDP in the third quarter were the public services, construction, health care and social assistance sectors as well as the professional, scientific and technical services sector. In contrast, retail trade, public administration, real estate services and rental and leasing services as well as wholesale trade recorded an increase in their activity levels.
Consumer and investment spending rose in Quebec in the third quarter, but GDP fell as the trade balance deteriorated and inventories slowed. Final consumption expenditure and investment expenditure increased in the third quarter.
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