Quebec: Real GDP Growth Has Already Slowed Considerably

Quebec's real GDP growth slowed from 5.9% to 1.0% on an annualized basis in the second quarter. This figure was built on shaky foundations. The rebound in service spending will be short lived, as bars, restaurants and entertainment venues reopened at full capacity last spring. Consumer spending will slow in the coming quarters as high inflation continues to eat into real household incomes. The housing market correction is underway, and business investment is expected to weaken soon. And we can't expect much help from international trade, as the entire global economy is under pressure.