According to the Conference Board du Canada, real GDP in the Québec City CMA rose by 1.9% in the first quarter of 2010, reaching CDN $24.9 billion. The region has now made up for the output lost during the recession and regained the heights reached in 2008 La région a récupéré les pertes de production subies lors de la récession et elle a retrouvé le sommet atteint en 2008.
According to the Conference Board of Canada, real GDP in the Quebec City CMA rose by 1.9% in the first quarter of 2010, reaching $24.9 billion. The region has now made up for the output lost during the recession and regained the heights reached in 2008.
Once again, the Quebec City CMA capitalized on the strong performance of the construction industry (+3.5%) and services sector (+2.3%), particularly financial services and insurance. The regional economy was also sparked by internal demand, with retail sales jumping by 7.3% compared with the same period in 2009. In addition, the manufacturing sector put the brakes on its decline despite the financial difficulties faced by a number of major companies.
Although Quebec City finds itself in the middle of the pack as regards GDP growth in the first quarter, it has no reason to envy other Canadian regions. Its growth is driven by all sectors, whereas British Columbia and Ontario actually benefited from a short-term event and a one-time government stimulus: the Olympic Games were beneficial to the Vancouver region, while government assistance for the manufacturing industry stimulated regions across Ontario. The Quebec City CMA thus offers better economic stability and is more likely to maintain sustained growth in 2010.
Overall, the Quebec City CMA remained among Canada's top-performing metropolitan economies in the first quarter. However, the robustness of the regional economy will be tested in the coming months. Although Quebec City is still counting on the positive effects of economic diversification and has a large number of major projects scheduled for completion over the next few years, it still faces certain constraints. For example, the provincial government's contribution will diminish as temporary tax policies that stimulated the economy in 2009 (renovation credits, support program for businesses at risk during the economic slowdown, etc.) are discontinued. In addition, a gradual increase in interest rates could moderate consumption levels. Also, the manufacturing sector continues to await clearer signs of recovery in the US economy.