Québec, September 26, 2023. – In the second quarter of 2023, Québec’s real gross domestic product (GDP) at market prices was down 0.5% from the previous quarter (+0.3%). At an annualized rate, this was a 1.9% decrease.
The decline in the second quarter was attributable to several factors: a decrease in investment spending, a slowdown in inventory accumulation, and a drop in final consumption expenditure. The negative effects of these factors on GDP were mitigated by an improved trade balance in the second quarter. That was revealed today in Comptes économiques du Québec, 2e trimestre 2023 published by the Institut de la statistique du Québec.
Decrease in investment spending
Investment spending was down for the fifth consecutive quarter with a 2.4% decrease. Business investment was behind this decline, more specifically business investment in residential buildings, which was down 5.8% from the previous quarter. Other types of business investment also declined, but to a lesser extent. General governments investment spending rose by 0.2%.
| Real gross domestic product at market prices and its main components1 (percentage change) |
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| Québec | Canada | |||||||||||||
| 2023 | 2023 | |||||||||||||
| Q1 | Q2 | Cumul2 | Q1 | Q2 | Cumul2 | |||||||||
| Real gross domestic product at market prices | 0.3 | – 0.5 | 0.5 | 0.6 | 0.0 | 1.6 | ||||||||
| Final domestic demand | 0.1 | – 0.6 | – 0.2 | 0.3 | 0.3 | 0.5 | ||||||||
| Final consumption expenditure | 0.4 | – 0.2 | 2.8 | 0.6 | 0.2 | 2.2 | ||||||||
| Households | 1.3 | – 0.5 | 4.3 | 1.2 | 0.1 | 2.6 | ||||||||
| General governments | – 1.5 | 0.4 | – 0.5 | – 0.9 | 0.6 | 0.8 | ||||||||
| Gross fixed capital formation | – 1.4 | – 2.4 | – 10.9 | – 0.7 | 0.3 | – 4.8 | ||||||||
| Businesses | – 2.0 | – 3.1 | – 13.5 | – 1.4 | 0.4 | – 6.4 | ||||||||
| General governments | 1.3 | 0.2 | – 0.3 | 2.5 | – 0.2 | 3.3 | ||||||||
| Exports of goods and services | – 1.1 | 2.6 | 3.8 | 2.5 | 0.1 | 6.9 | ||||||||
| Imports of goods and services | – 0.9 | 1.3 | 1.2 | 0.2 | 0.5 | – 0.4 | ||||||||
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1. Changes in real gross domestic product at market prices and its components are calculated from seasonally-adjusted data and are expressed in chained dollars using the chain Fisher index (reference year 2012). 2. Change in the first half of 2023 from the first half of 2022. Sources |
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Change in inventories negatively impacted real GDP
The slowdown in inventory accumulation negatively impacted real GDP growth in the second quarter of 2023. This was the lowest increase since the first quarter of 2022 and the third negative contribution in four quarters.
Final consumption expenditure down
Final consumption expenditure declined by 0.2% in the second quarter of 2023, its first decrease since the second quarter of 2020. The decline in the second quarter came from a 0.5% decrease in household final consumption expenditure. Household spending on services (-0.7%) and goods (-0.3%) both declined. Final consumption expenditure of governments (+0.4%) and non-profit institutions (+1.9%) mitigated the negative impact of household spending on final consumption expenditure.
Canada’s real GDP at market prices stagnant in the second quarter of 2023
According to data released by Statistics Canada on September 1, Canada’s real GDP at market prices remained relatively unchanged in the second quarter of 2023, after a 0.6% increase in the previous quarter.
Québec’s real GDP at basic prices up 0.1% in June 2023
In June 2023, Québec’s real gross domestic product at basic prices was up 0.1% from the previous month, after a 0.1% decline in May. In June, goods-producing industries and service-producing industries increased by 0.3% and 0.1%, respectively. That was revealed in Produit intérieur brut par industrie au Québec, juin 2023 released today by the Institut de la statistique du Québec.
Goods production up 0.3%
The real GDP of goods industries grew 0.3% in June 2023 after decreasing 0.3% in May. Manufacturing (+1.2%) was the main industry behind the increase in June. In contrast, utilities posted a significant decline (-3.0%).
Service industries up 0.1%
The output of service industries rose by 0.1% in June 2023 after remaining stable in May. Wholesale trade (+0.8%), public administration (+0.3%) and information and cultural industries (+0.7%) were up in June, while health care and social assistance was down
(-0.8%).
Canada’s real GDP at basic prices down 0.2% in June 2023
According to data published by Statistics Canada on September 1, Canada’s real GDP at basic prices decreased by 0.2% in June 2023. Goods-producing industries and service-producing industries declined by 0.4% and 0.2%, respectively.
The Institut de la statistique du Québec produces, analyzes and disseminates official, objective and quality statistical information on various aspects of Québec society. It is responsible for conducting all statistical surveys of general interest. The relevance of its work makes it a strategic ally for decision makers and all those wishing to learn more about Québec.