The DLI Isn’t Falling Quite as Fast, but Quebec’s Economy Isn’t Out of the Woods Yet

Despite posting a smaller decline in January, the DLI remains in negative territory, signalling an economic contraction ahead. It’s been a bumpy ride for Quebec’s economy. Real GDP was up 1.9% in the fourth quarter of 2022 after slipping 1.3% in Q3. Like the pandemic, which muddied the economic data for some time, government payments to households are affecting the path of the economy. We’re seeing brief periods of recovery followed by pullbacks in retail sales as many pillars of the economy remain on shaky footing. Bottom line? Quebec’s economy could still dip into a recession this year.