Quebec has historically struggled to keep up, economically speaking, with the rest of Canada. The economic history of Quebec is characterised by deep recessions as well as spurts of growth.

In the 1990s the Quebec economy was booming, and Quebec was outperforming the Canadian average. However, a recent study by the HEC's Centre for Productivity and Performance has shown that the Quebec economy is stalling: labour productivity is stalling, and the economy is not generating wealth.

TL;DR A new study by the HEC shows that Quebec is lagging behind the rest of the country in terms of productivity, and a less productive economy means less disposable income. The study identifies three ways in which the province can kick-start growth.

The HEC study demonstrates that Quebec is lagging behind the rest of Canada in terms of economic growth: the rate of growth has remained at 0.1% over the last four years.

The reason a slow rate of growth is undesirable is that it indicates that "they have less money to spend and save than the residents of other provinces."

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The study goes on to say that "With average per capita disposable income of $28,455 in 2017, Quebec now sits at the bottom of the heap."

The lack of productivity is not due to the "laziness" of workers per se: the study shows that an increase in the labour force, or the increase in hours worked would only have a marginal effect of growth.

The fault lies mostly with companies. Companies in Quebec are less productive than Canada as a whole, only outpacing the Maritimes.

The survey identifies three main areas that Quebec could improve on:

  1. Invest in education

  2. Stimulate private investment

  3. Encourage innovation

CPP Director Robert Gagné concludes by saying that “if no action is taken to remedy this situation, the wealth gap between Quebec and other economies is bound to widen.”

Source | Source

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