The Quebec economy

The French-speaking province of Canada manages to distinguish itself thanks to its significant role in the national and international economy. Quebec positions itself as a major player in the North American economic landscape. However, Quebec's economic vitality is the fertile ground where both flamboyant successes and challenges are born, sowing the seeds of lasting prosperity.

Gross domestic product (GDP) and key sectors of the Quebec economy

Quebec's economic health is closely linked if not influenced by numerous factors such as the performance of the main economic sectors, investments, household consumption, exports and government spending. In 2022, Quebec's GDP was nearly 436 billion Canadian dollars, or nearly 284 billion euros.

The engines that power the Quebec economy are diversified. We include in particular:

Financial services: they play a crucial role in supporting the Quebec and international economy. The Montreal metropolitan region is the heart of the Quebec economy and represents approximately 53.4% of the province's GDP. The latter is home to a thriving financial ecosystem with its renowned banking institutions and leading insurance companies.

Information and communications technologies (ICT): in the field of technology and communications, Quebec shines sufficiently. With innovative companies in software, video games and emerging technologies, the province is at the forefront of the digital revolution.

Aerospace: world leaders in the aerospace sector, Quebec companies like Bombardier and Pratt & Whitney Canada are pushing the boundaries of innovation. Their cutting-edge aircraft, engines and aeronautical equipment are recognized worldwide.

Manufacturing industry: Quebec has a solid manufacturing base. Its factories produce a diverse range of products, contributing to economic growth and job creation.

Tourism: undoubtedly a major economic pillar in Quebec. The province attracts millions of visitors each year, boosting the local economy and creating business opportunities.

The agri-food industry: proud of its local products, Quebec excels in the agri-food industry, whose products such as cheese, seafood and wine are popular on local and international markets.

However, the Quebec economy has not remained immune to certain difficulties. After slipping and resisting for a long time, the Quebec economy lacked vigor at the start of 2023 and experienced fluctuations. The province is currently facing a recession, albeit a moderate one. In the third quarter of 2023, Quebec's real GDP fell by around 0.5%. For several months now, Quebec's GDP seems to be stagnating.

Quebec government economic policies

The government of Quebec is rolling out a series of ambitious economic policies aimed at supporting growth and innovation while strengthening the competitiveness of the province. Through initiatives such as financial support for businesses, investment in research and development, infrastructure development and workforce training, Quebec strives to create an environment conducive to business. In addition, particular attention is paid to the promotion of international trade and the adoption of environmental policies favoring sustainable development. These efforts demonstrate Quebec's commitment to ensuring lasting economic prosperity for its citizens while contributing to the national and global economy.

Current economic challenges

Despite its economic dynamism, Quebec faces several major challenges. First of all, the shortage of qualified labor will persist in 2024. This shortage hinders the growth of many sectors. Businesses struggle to find talent that fits their needs, hampering innovation and productivity. Also, the transition to a green economy presents challenges for traditional industries which must adapt to new environmental standards and sustainable practices. Furthermore, in a competitive global market, Quebec must strengthen its competitiveness to attract investors and remain relevant internationally. Quebec's exports represent 51.8% of its GDP including interprovincial trade, but the French-speaking province is experiencing a decline in export growth. This requires supportive policies. The aging population also represents a major challenge in terms of labor, social spending and health care. Innovative solutions are needed to meet the growing needs of this population.

Faced with these complex economic challenges, Quebec must adopt a proactive and strategic approach to ensure inclusive sustainable growth.

The Quebec economy is dynamic, diversified and plays an essential role in the North American context. Quebec has a real capacity to adapt to continue its growth and create wealth. However, we wonder how precisely the French-speaking province can capitalize on its economic assets and overcome its challenges to become a regional leader in innovation and sustainability?