Economic News
GDP in the Quebec City region hit a new high of $26.4 billion in 2011 spurred by annual growth of 2.4%
Highlights
- According to the Conference Board of Canada, GDP in the Quebec City census metropolitan area (CMA) hit a new high of $26.4 billion in 2011 spurred by annual growth of 2.4%.
- This fine performance was primarily driven by the construction industry (+7.5%) and the services sector (+2.6%), offsetting negative growth in the areas of manufacturing (‑0.6%) and primary industry (-3.3%).
- Over the past five years, real GDP in the Quebec City CMA has risen by 11.9%, the best showing of the eight largest Canadian CMAs. The region also had the largest GDP growth between 2008 and 2011 (+6.6%) as the other Canadian regions struggled to put the financial crisis behind them.
- The Quebec City region also performed well in terms of annualized growth rates over 3 years (2.1%) and 5 years (2.3%), well ahead of Edmonton and Vancouver.
Commentary
Annual real GDP in the Quebec City CMA grew by 2.4% in 2011, hitting a record high of $26.4 billion. This indicates that the region withstood the many uncertainties that buffeted the global economy last year. It also reflects well on the regional economy, which maintained its growth momentum in recent years as a number of other metropolitan regions were recovering from the 2009 recession. In this regard, real GDP in Quebec City rose 11.9% over the past five years (2006-2011), the fastest growth rate of Canada's eight main CMAs.
Quebec City's fine economic showing was based on the services sector, driven by excellent performances in the areas of professional, scientific and technical services, as well as administrative/financial services and insurance. The construction industry also maintained its momentum in 2011 thanks to the launch of nearly 100 major residential and non-residential projects with a combined value of more than $3.9 billion. In addition, the manufacturing sector slowdown, first observed in 2008, seems to have ended, although certain sub-sectors are still struggling.
The growth outlook is positive for the Quebec City CMA in 2012. According to our baseline scenario, the annual increase in real GDP will be 2%. Most indicators will continue to increase even though external factors could still have an adverse impact on the regional economy-a situation that could also play out in other regions.
Louis Gagnon
Senior Economist
Quebec International
