Quebec: What’s Left after the Post-recession Recovery?

Quebec is gradually emerging from the pandemic and has exited the recession caused by the public health measures imposed to curb the spread of COVID-19. The provincial economy returned to its 2019 real GDP level in 2021, but this conceals many sector-level disparities. A quick comparison with the recession in the late 2000s shows that the causes of the two economic downturns were quite different, as were the impacts suffered and the subsequent economic environments. Quebec’s economy held up well, growing despite labour shortages, supply chain disruptions and rampant inflation in late 2021 and early 2022. With very low unemployment and a record number of employed workers, demand for goods and services is expected to remain robust for most of this year. The impact of higher interest rates is likely to be more acute in 2023. The economy still has fuel in the tank—for now.