Quebec’s real gross domestic product (GDP) rose 0.9% in August from the previous month, after declining 0.7% in July.
The increase in August is based on almost all of the main sectors, according to data released Tuesday by the Institute of Statistics of Quebec (ISQ).
“Even if an upturn in activity was expected in August, it is clearly above expectations,” said Hélène Bégin, senior economist at Desjardins.
For example, the production of goods rose 1.4% in August, after declining 1% in July. This increase comes mainly from the manufacturing (+ 1.5%), mining, quarrying, and oil and gas extraction (+ 7%), and utilities sectors. (+ 4.2%). In addition, the construction sector fell back (-1.7%) for a fourth consecutive month.
Activity in services recovered by 0.7% in August after a decline in July (-0.5%). The arts, entertainment and recreation industry (+ 4.0%) posted the largest gain, and the accommodation and food services sector (+ 2.7%) also posted a significant jump.
“This recovery allows real GDP to stay above the level of February 2020, just before the start of the pandemic,” noted the ISQ.
“Fortunately, the summer period has been favorable in the industries most affected since the start of the pandemic. The recovery of the accommodation and food services as well as the arts, entertainment and recreation sectors, which began in June, continued in July and August. The additional reductions in measures during the fall, making it possible to fill performance halls and restaurants to their maximum capacity, will help these industries to continue their recovery, ”Ms. Bégin analyzed.
“Beyond the strong volatility of real GDP in recent months, the third quarter promises to be better than expected. Thanks to the upturn in August, growth should be around 1.5% in the third quarter, ”added the economist.
For the first eight months of the year 2021, Quebec’s real GDP was 8.4% higher than that of the same months of 2020, and it increased by 6% in Canada for this period. According to information released by Statistics Canada, Canadian real GDP at basic prices increased 0.4% in August 2021.