Quebec’s economy continues to surprise with its strength, with gross domestic product rebounding to end the year at a very respectable 2.8% growth in the last quarter of 2022.
“The recession that started in the third quarter has been swept under the rug, at least for now,” commented Desjardins economist Helen Begin.
After a 1.3% decline in the third quarter, Quebec’s economy bounced back to life in the fourth quarter, with consumer spending growth up 7.3%. Consumption of goods and services increased as a result of the checks distributed by Francois Legault’s government last December. This financial support, as well as wage increases, also increased the savings rate. The savings rate rose to 13.9% in the fourth quarter from 9.3% in the third quarter, higher than the 6% rate recorded in Canada, noted National Bank economist Darren King.
Despite inflation and rising interest rates, the National Bank believes a recession can be avoided in Quebec. “Québec’s consumer finances have a high savings rate compared to the rest of the country and a low level of debt, assets that face current challenges,” its economist said.
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