What do May GDP figures mean for Quebec?

What do May GDP figures mean for Quebec?

What do May GDP figures mean for Quebec? After suffering three months of non-growth, Quebec’s economy saw a ray of hope in May with a jump of 0.4% in real GDP.

According to an economic commentary from Desjardins, many major industries in Quebec showed a strong rise in output, with wholesale trade leading the pack at more than 0.2% growth and Utilities in second place at around 0.15%.

The major sour note in the report is manufacturing, which experienced a devastating dip of around -0.23% in May. Construction also fell, though only by around -0.5%.

“Although the manufacturing sector is still struggling (with a monthly pullback of 1.5%), many other industries have done well, in particular accommodation and food services which is showing strong growth,” reads the report. “This positive trend should continue in the ensuing reporting periods, since the exceptional summer weather and the relative weakness of the Canadian dollar can only be to the tourism sector’s advantage.”

The commentary also notes that Quebec seems to be insulated from the effects of the Alberta forest fires and sagging oil prices, showing more stability than Canada’s economy overall under the circumstances. Nonetheless, it predicts that real GDP growth for 2016 in the province will ultimately settle at slightly above 1%, similar to the growth predicted for the Canadian economy.

Related stories:
Bouncing back: Q3 rebound expected for exports
National Bank trims growth forecasts for Canada