The growth of the Quebec economy remains “losing momentum” despite the slight rebound of 0.1% in real GDP in May, which was reported Tuesday morning by the Institut de la statistique du Québec.
Posted at 3:03 p.m.
“After experiencing a slight contraction of 0.1% in April, Quebec’s GDP rebounded by the same magnitude in May,” notes Alexandra Ducharme, economist at the National Bank, in an analysis note published Tuesday.
“However, this rebound in May was exclusively attributable to the services sector which recorded a fourth consecutive monthly gain. (transport, traders, restaurants, hotels, health and education, editor’s note) The goods sector was down for a second consecutive month. » (manufacturing, construction, agriculture, forestry, editor’s note)
Therefore, anticipates Mme Ducharme, “GDP growth in Quebec, which is already slowing after four quarters of acceleration, is expected to moderate significantly in the coming quarters. Interest rate sensitive industries are particularly vulnerable. »
At Desjardins, the chief economist, Hélène Bégin, considers that “the weak gain in real GDP in May confirms that the Quebec economy lost momentum this spring and that it began to slow down after having experienced a first very vigorous. »
Therefore, according to M.me Bégin, “Growth is slowing rapidly and the coming quarters will be difficult. High inflation and the steep rise in interest rates are affecting both household and business sectors. These will also be affected by the slowdown in the global economy. »
In this context, the Desjardins economist anticipates, “Quebec’s economy should keep its head above water, but there will be a thin line between very weak growth and a slight decline in real GDP. »