Highlights
- According to the Conference Board of Canada, real GDP in the Quebec City census metropolitan area (CMA) totalled $34.5 billion in the first six months of 2015, up 2% from the same period in 2014.
- The region continued to grow despite the impact of certain factors that appear to be dragging down economic performance in Canada as a whole.
- GDP growth in Quebec City was helped by increases of 2.4% in manufacturing output and 1.7% in the services sector.
- However, the sluggish non-residential market hampered construction-sector performance (-0.6%).
Commentary
In the first six months of the year, Quebec City's economic growth was most noticeable in manufacturing (+2.4%) and services (+1.7%). The manufacturing sector continued to make gains after hitting a low in 2013. In the services sector, growth was sustained by the strong performance of all production, consumption and public services components. The construction sector posted a small year-over-year drop of 0.6% as the robust residential market was not enough to offset sluggishness in the non-residential market.
These half-year figures support our forecast of 2% real GDP growth in the Quebec City CMA for the full 12 months. In addition to posting improvements in most of its sector components, the region also saw job creation (+0.5%), higher personal disposable income per capita (+3%) and higher consumption (+1.7%). The arrival of new companies and the expansion of existing ones, combined with the launch of new major projects, should help to support economic growth in Quebec City in the second half of 2015.
Louis Gagnon
Senior Economist
Québec International
