Economic News
Bankruptcies up slightly in Quebec City in the first quarter of 2012
Highlights
- According to results made public by the Office of the Superintendent of Bankruptcy, the Quebec City census metropolitan area (CMA) recorded 505 bankruptcies in the first quarter of 2012, or five more than during the same period of 2011.
- The increase was attributable to consumers: 470 of them filed for bankruptcy, up from 463 one year ago. Meanwhile, 35 companies filed, or two less than during the same period of 2011.
- Quebec City itself had a total of 492 bankruptcies in the first quarter, or an annual increase of 2.7%.
- For the Chaudière-Appalaches region, the number of bankruptcies fell by 1.7% to 236.
- The province of Quebec recorded 6,716 bankruptcies in the first quarter, down 4.8% year over year. In all of Canada, 19,118 consumers and companies filed for bankruptcy, down 8.9%.
Commentary
The Quebec City CMA recorded 505 bankruptcies in the first quarter of 2012, up slightly (+1%) compared with the same period in 2011. However, there is no cause for alarm. The regional bankruptcy rate remains near the levels observed since 2010, or approximately 500 bankruptcies in the first three months of the year. In addition, the latest trends suggest that this number will taper off in the next few quarters.
Year over year, the number of corporate bankruptcies fell to 35 in the first quarter of 2012 (compared with 37 in the first quarter of 2011). In this regard, the region has fared somewhat better than it did in 2010 and 2011, thanks in part to the diversity of Quebec City’s business sector and the efforts made to adjust to various economic constraints, which are still present.
Most of the increase in the number of bankruptcies in the first quarter of 2012 can be attributed to consumers, 470 of whom filed for bankruptcy in Quebec City, up slightly from 463 in the same period of 2010. The region was unable to further reduce the low recorded last year. However, the number of bankruptcies remains at one of the lowest levels in the past six years. In addition, the creation of 15,800 jobs in the first quarter will help to improve the financial picture for households in the coming months.
Louis Gagnon
Senior Economist
Quebec International
