(Quebec) Economic growth in Quebec slowed in the second quarter, falling from 1.4% in the first quarter to 0.3%, its advance having been mainly attributable to an increase in spending on services, the Institut de Quebec statistics.
Posted at 3:07 p.m.
In its report on Quebec’s economic accounts released on Tuesday, the provincial agency said spending on services jumped 4.6% in the April-June quarter, after falling 0.7% in the first quarter. trimester.
Higher spending on services offset several declines, including a 0.2% decline in consumer spending on goods and a 1.2% decline in consumer spending by public administration.
On an annualized basis, Quebec’s economic growth reached 1% in the second quarter. In Canada, real GDP growth was 0.8% in the second quarter, representing annualized growth of 3.3%.
The increase in the second quarter represented the eighth consecutive increase in Quebec GDP since the second quarter of 2020, underlined the Institut de la statistique du Québec.
Foreign trade reduced GDP growth in the second quarter, the agency added. The volume of total imports of goods and services increased by 7.4%, much more than that of total exports of goods and services, which rose by 4.5%.
Economist Hélène Bégin, of Desjardins’ economic studies, estimated in a note that the “slight growth” was based on “fragile foundations”.
“The rebound in spending on services will be fleeting since it is explained by the reopening at full capacity of bars, restaurants and performance halls last spring,” she argued.
Mme Bégin expects consumer spending to slow in the coming quarters due to high inflation, which will continue to reduce real household incomes.
“Real GDP will thus be close to neutral until mid-2023 and the line will be thin between weak growth or a slight decline in economic activity,” she predicted.