A new Desjardins report claims that Quebec’s economy is expected to grow slower than the national average for the second consecutive year. This is due to a moderate recession in the province during the second half of this year after eight successive interest-rate hikes by the Bank of Canada between March 2022 and January 2023. During the first four months of 2023, Quebec’s GDP only increased by 0.9%, compared to the national average of 2.3%. Forest fires have also affected output and exports in the paper and wood industries. The province’s population growth is slower than the rest of Canada, with a growth rate of only 2.1% in the year ending in April 2023, compared to a national average of 3.1%. This, along with insufficient immigration levels, has led to a labour shortage in the market.
