A Review of the Economic and Financial Situation of Québec

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A Review of the Economic and Financial Situation of Québec

take action to combat the labour shortage and stimulate economic growth;

continue efforts to strengthen the health care system.

The strength of the economic recovery has a major impact on public financesQuébec’s budgetary situation is also more favourable than forecast in the March budget. The budgetary deficit for this year is now evaluated at $6.8 billion after deposits of dedicated revenues in the Generations Fund, or $5.4 billion less than anticipated.

Exceptional economic growth in 2021Thanks to the cooperation and resilience of Quebecers and businesses, the Québec economy has recovered more quickly than expected. Economic growth should reach 6.5% this year, up 2.3 percentage points from the March 2021 budget forecast. This exceptional growth will exceed that of Canada, the United States and even the global average.

Story Highlights

  • help Quebecers cope with the cost of living;

  • support families and help communities;

$2.1 B to help Quebecers cope with the cost of livingThe strong global economic recovery is generating a significant increase in prices that is affecting Quebecers’ purchasing power. The government is taking strong action to protect Quebecers, particularly low-income households, against inflation, which could reach close to 4.0% in 2021–2022. In this regard, investments of $2.1 billion over the next five years will allow for the payment, in early 2022, of the exceptional cost of living allowance, thanks to which 3.3 million low- and middle-income earners will receive an amount of $400 for a couple and $275 for a person living alone.

In addition, an enhancement to the senior assistance amount for seniors aged 70 or over will bring the maximum assistance to $400 per person starting this year. Nearly 709 000 seniors will benefit from this enhancement. Thanks to these two measures, a senior living alone could receive up to $675.

Story continues Additional investments are also provided to help households gain access to housing, particularly by building approximately 2 200 new affordable housing units throughout Québec.

$3.4 B to combat the labour shortage and stimulate economic growthMeasures taken by the government over the past three years have improved Quebecers’ standard of living, narrowing the wealth gap with Ontario, which has shrunk from 16.4% in 2017 to 12.9% in 2021. In order to continue on this trajectory and step up efforts to eliminate this gap, new initiatives totalling $3.4 billion will be implemented over the next five years to combat the labour shortage and stimulate economic growth. Of this amount, more than $2.9 billion will be invested in training, requalifying and attracting workers in key areas of activity such as:

health and social services; education;

information technologies; construction.

engineering; educational childcare services;