Québec, March 26, 2026. – In the fourth quarter of 2025, Québec’s real gross domestic product (GDP) at market prices was down 0.1% from the third quarter (+0.1%). In 2025 overall, Québec’s real GDP increased by 0.7%, a slower pace than in 2024 (+1.7%). That was revealed today in Comptes économiques du Québec, 4e trimestre 2025 (in French only) published by the Institut de la statistique du Québec.
The decline in real GDP in the fourth quarter of 2025 was mainly due to a $4.8 billion drop in inventory investment, as the other real GDP aggregates all contributed positively to growth, including an improved trade balance (+$1.7 billion) and greater household final consumption expenditures (+$1.7 billion).
| Québec | Canada | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2025 | |||||||||||||
| Q3 | Q4 | Year | Q3 | Q4 | Year | |||||||||
| Real gross domestic product at market prices | 0.1 | -0.1 | 0.7 | 0.6 | -0.2 | 1.7 | ||||||||
| Final domestic demand | -0.3 | 0.5 | 1.8 | -0.1 | 0.6 | 2.1 | ||||||||
| Final consumption expenditure2 | -0.3 | 0.6 | 1.8 | -0.3 | 0.5 | 2.3 | ||||||||
| Households | -0.3 | 0.6 | 1.6 | -0.2 | 0.4 | 2.3 | ||||||||
| Governments | -0.4 | 0.6 | 1.9 | -0.7 | 0.8 | 2.4 | ||||||||
| Gross fixed capital formation2 | -0.2 | 0.3 | 1.8 | 0.5 | 0.8 | 1.4 | ||||||||
| Businesses | -0.3 | 0.3 | 2.9 | -0.2 | -0.1 | 0.3 | ||||||||
| Businesses | 0.4 | 0.5 | -2.2 | 3.9 | 4.7 | 6.7 | ||||||||
| Exports of goods and services | 0.4 | 0.2 | -0.9 | 0.9 | 1.5 | -1.7 | ||||||||
| Imports of goods and services | -1.8 | -0.5 | 0.9 | -2.9 | 0.3 | -0.4 | ||||||||
Sources
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Overview of quarterly economic accounts for 2025
Final consumption expenditures up 1.8%
Final consumption expenditures were the main driver of annual real GDP growth in Québec (+0.7%) in 2025, as they increased 1.8% compared with 2024. This increase was mainly supported by the final consumption expenditures of households (+1.6%) and, to a lesser extent, of governments (+1.9%).
Investment spending rose by 1.8%
Gross fixed capital formation increased by 1.8% in Québec in 2025, driven by higher business investment (+2.9%), which was essentially supported by investment in residential buildings (+7.6%). Government investment spending decreased by 2.2% in 2025.
Foreign trade balance deteriorated
In 2025, exports of goods and services decreased by 0.9%, while imports of goods and services rose by 0.9%. As a result, the foreign trade balance negatively impacted real GDP growth in 2025.
$1.3 billion slowdown in inventory investment
The pace of inventory investment was reduced by $1.3 billion, going from an increase of $1.2 billion in 2024 to a decrease of $35 million in 2025. This slowdown in inventory investment therefore negatively impacted real GDP growth in 2025.
Canada’s real GDP at market prices up 1.7% in 2025
According to data released by Statistics Canada on February 27, 2026, Canada’s real GDP at market prices was down 0.2% in the fourth quarter of 2025 compared to the previous quarter. For 2025 overall, Canada’s real GDP rose by 1.7% from 2024.
Québec’s real GDP at basic prices up 0.3% in December 2025
In December 2025, Québec’s real GDP at basic prices was up 0.3% from the previous month after a 0.1% decline in November. In December, the output of the goods and service industries grew by 0.5% and 0.3%, respectively. That was revealed in Produit intérieur brut par industrie au Québec, décembre 2025 (in French only) released today by the Institut de la statistique du Québec.
Goods production up 0.5%
The output of goods-producing industries increased by 0.5% in December following a 0.6% decline in November. The increase in December came mainly from manufacturing (+0.6%) and agriculture, forestry, fishing and hunting (+3.7%). In contrast, construction was down 0.6%. .
Service industries up 0.3%
The output of service industries was up 0.3% in December after growing 0.1% in November. The increase in December was mainly attributable to wholesale trade (+3.9%) and, to a lesser extent, transportation and warehousing (+1.7%).
Canada’s real GDP at basic prices up 0.2% in December 2025
According to data published by Statistics Canada on February 27, 2026, Canada’s real GDP at basic prices rose 0.2% in December 2025. Output was up 0.2% in both the goods and service industries.
Real GDP at basic prices in 2025
In 2025, the output of goods-producing industries decreased by 1.2%, while that of service-producing industries grew by 1.4%.
More specifically, output was up in 14 of the 20 major economic sectors. The largest increases were in real estate and rental and leasing (+2.2%), finance and insurance (+3.4%), educational services (+3.0%), health care and social assistance (+1.7%), and retail trade (+2.5%). In contrast, the manufacturing sector dampened growth the most in 2025 as it posted a 3.9% decline.
Annual change in manufacturing, Québec
Source
Institut de la statistique du Québec.
The Institut de la statistique du Québec is the public body responsible for providing reliable, objective statistical information about Québec society. 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.