I know, some find me chauvinistic or cheerful, but what do you want, when it’s the official figures that speak, I can’t help it.
Posted at 6:30 a.m.
And these figures, they contradict what many have been saying about the Quebec economy in recent years, namely that it is progressing more slowly than elsewhere, for various reasons.
On Tuesday, Statistics Canada released its official 2021 figures on gross domestic product (GDP), household savings rate, housing investment, government deficits, and more, taken from provincial economic accounts.
First element dissected: standard of living, defined as GDP per capita1.
In 2021, therefore, the standard of living of Quebecers has increased by 5.7% – net of inflation – which places us in second place in Canada for growth, behind Prince Edward Island. British Columbia is at 5.2%, Ontario at 4.6%, and the Canadian average at 4.4%.
Better still: this GDP per capita of Quebec has grown faster than the Canadian average every year for seven years, since 2015 (and since 2016 compared to Ontario).
Yes, but the pandemic? Granted, COVID-19 shook up the 2020 and 2021 data, but in the long term, Quebec’s trend continues. Thus, the growth in our standard of living ranks third among the provinces over five years and third also over ten years, behind British Columbia, but ahead of Ontario and Alberta (in tenth and last place).
In absolute figures, Quebec’s GDP per capita remains significantly lower than in Alberta or Newfoundland and Labrador, where oil is inflating the size of the economy. Recent advances nonetheless put Quebecers in fifth place in this regard ($47,772 per capita, in 2012 dollars).
We continue to be outpaced, however, by comparable provinces such as Ontario ($54,413) and British Columbia ($54,227), respectively by 13.9% and 13.5%, which we must catch up .
GDP per capita is far from perfect. It says nothing about the distribution of wealth, for example. And its composition can make it difficult to compare absolute numbers between regions, hence the interest in focusing on its growth.
Another key indicator makes it possible to assess Quebec’s progress, namely the household savings rate or, in other words, what Quebecers manage to put aside once expenses and taxes have been paid.
In 2021, Quebecers had a savings rate of 14.6%, the highest savings rate of the 10 provinces. Pandemic-related government assistance is a major factor in the rise in this savings rate. This rate will decline in 2022 and over the next few years.
The fact remains that for seven years, Quebecers have had a higher savings rate than Ontario, British Columbia and the Canadian average. This gap contrasts with the period 1981-2002, when Quebec was clearly below Ontario.
These past data say nothing about the future. Quebec will be hard hit by the aging of the population and the labor shortage, among other things, which will put pressure on its growth. In the meantime, our growing GDP per capita allows the government to pocket more revenue to pay for our public services.
The “least worst” green banks
Furthermore, in the context of COP27, the World Benchmarking Alliance (WBA) organization has just published the ranking of 400 financial institutions in the world with regard to their concern for sustainable development.
PHOTO CHRIS HELGREN, REUTERS ARCHIVES
The Bank of Montreal (BMO) took the 1er rank in the ranking of the 400 financial institutions in the world with regard to their concern for sustainable development.
Results ? The Bank of Montreal (BMO) and the Caisse de depot et placement du Québec are among the top 30 institutions in this regard, according to the WBA. BMO ends at 1er rank, the Caisse at 26e rank.
The ranking measures the quality of governance and strategy of institutions, their respect for the capacities of the planet and their adherence to social conventions.
This relative good news hides a much less rosy aspect, namely the miniscule proportion of institutions that obtain what one might call the passing mark of 50 out of 100.
BMO has a score of 52.5 out of 100 and the Caisse, 32.5. Among other Canadian financial institutions, National Bank was ranked 73e rank (22.9 out of 100), the Royal Bank at 107e ranking, (19 out of 100) and Desjardins Group at 165e rank (13.8 out of 100).
Of the 400 institutions, 84 score 2 or less out of 100…
The WBA also notes that only 37% of the main institutions have published long-term carbon neutrality objectives and 2%, intermediate objectives.
1. Statistics Canada publishes real GDP by province, which I divided by the number of inhabitants to obtain the standard of living and its growth.