The Québec City CMA shows exemplary economic strength in 2017. According to recent data from The Conference Board of Canada, its real GDP grew 2.7% in the third quarter when compared to the same period in 2016, reaching $34.8 billion. Moreover, the region recorded a growth superior to 2% for a second consecutive quarter, for the first time since 2010. This performance, not unlike other major Canadian metropolitan areas, allows Québec City to take an expansionistic direction.
For a fifth consecutive quarter, all of its sectors support Québec City’s economic growth. For the services sector (+2.5%), components related to consumption (+2.9%) and public administration (+4.3%) are accelerating. As for the services related to production, they are gaining speed (+2.1%) after a calmer period from 2014 to 2016. The construction sector observed a 3.7% GDP growth in the third quarter, a performance rooted in the gradual launch of new major residential and non-residential projects. Concerning manufacturing activities, these have shown an acceleration of 6.6% in last quarter. The industry’s motivation to invest in the development of new markets and in innovation allows it to get closer to the production levels that prevailed before the recession in 2009.
The good performance of the Québec City area in 2017 is on par with our forecast scenario. For the first nine months of 2017, its real GDP cumulative growth is 2.4%. This dynamic economy, combined with the recovery in the employment sector in fall as well as the increased household income, will help sustain the economic expansion in Québec City for the fourth quarter of 2017, and will give it momentum to start 2018 on the right track.