Québec, September 24, 2025. – In the second quarter of 2025, Québec’s real gross domestic product (GDP) at market prices was down 0.6% from the previous quarter (+0.4%). At an annualized rate, this was a 2.4% decrease.
The decline in the second quarter was mainly attributable to the deterioration of the trade balance caused by a sharp decline in exports of goods and services. That was revealed today in Comptes économiques du Québec, 2e trimestre 2025 published by the Institut de la statistique du Québec.
| Québec | Canada | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2025 | |||||||||||||
| Q1 | Q2 | Cumulative change2 | Q1 | Q2 | Cumulative change2 | |||||||||
| Real gross domestic product at market prices | 0.4 | −0.6 | 1.2 | 0.5 | −0.4 | 1.7 | ||||||||
| Final domestic demand | 0.0 | 0.4 | 3.3 | −0.2 | 0.9 | 2.6 | ||||||||
| Final consumption expenditure3 | −0.4 | 0.7 | 3.2 | 0.1 | 1.1 | 3.2 | ||||||||
| Households | −0.3 | 1.0 | 3.6 | 0.1 | 1.1 | 3.2 | ||||||||
| General governments | −0.7 | 0.2 | 2.3 | −0.1 | 1.3 | 3.2 | ||||||||
| Gross fixed capital formation3 | 1.3 | −0.8 | 3.7 | −1.3 | −0.1 | 0.8 | ||||||||
| Businesses | 1.9 | −1.2 | 6.0 | −1.2 | −0.6 | 0.3 | ||||||||
| General governments | −1.2 | 0.7 | −4.4 | −1.4 | 2.1 | 3.2 | ||||||||
| Exports of goods and services | 1.9 | −4.6 | −1.1 | 1.4 | −7.5 | −1.4 | ||||||||
| Imports of goods and services | 1.8 | 0.1 | 3.3 | 0.9 | −1.3 | 0.6 | ||||||||
Sources
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Foreign trade balance deteriorated
In the second quarter of 2025, total exports were down 4.6% from the first quarter, while imports grew 0.1%. This resulted in a significant deterioration of Québec’s foreign trade balance, which alone explains the decline in real GDP.
Change in inventories positively impacted real GDP
The second quarter of 2025 was also marked by a faster increase in inventories, which contributed positively to real GDP and mitigated the negative effect of foreign trade.
Final consumption expenditures up
Final consumption expenditures on goods and services increased by 0.7% in the second quarter of 2025, supported mainly by growth in household spending (+1.0%) and government spending (+0.2%). In the first quarter, these expenditures were down for both households (-0.3%) and governments (-0.7%).
Canada’s real GDP at market prices down in the second quarter of 2025
According to data released by Statistics Canada on August 29, Canada’s real GDP at market prices was down 0.4% in the second quarter of 2025, after a 0.5% increase in the previous quarter.
Québec’s real GDP at basic prices down 0.1% in June 2025
In June 2025, Québec’s real gross domestic product (GDP) at basic prices was down 0.1% from the previous month, after a 0.4% decrease in May 2025. That was revealed in Produit intérieur brut par industrie au Québec, juin 2025 released today by the Institut de la statistique du Québec.
Goods output declined by 1.0%
Output in the goods-producing industries was down 1.0% in June after decreasing 0.9% in May. The drop in June came mainly from the manufacturing (-1.1%) and construction (-1.0%) sectors. The mining, quarrying, and oil and gas extraction sector (-2.7%) and the agriculture, forestry, fishing and hunting sector (-1.6%) were also down in June.
The decline in manufacturing stemmed from a decrease in 14 of its 19 subsectors, including transportation equipment manufacturing (-3.5%), primary metal manufacturing (-4.4%), and wood product manufacturing (-4.8%).
Service production up 0.1%
In June, output in the service industries was up 0.1% following a 0.2% decrease in May. The growth in June came mainly from wholesale trade (+2.0%).
Canada’s real GDP at basic prices down 0.1% in June 2025
According to data published by Statistics Canada on August 29, 2025, Canada’s real GDP at basic prices was down 0.1% in June for the second consecutive month. In June, goods-producing industries were down 0.5%, while service-producing industries grew by 0.1%.
For 25 years, the Institut de la statistique du Québec has been producing, analyzing, and disseminating official, objective and high-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 an essential source of information for all those wishing to learn more about Québec.