Québec, December 22, 2020. – In the third quarter of 2020, Québec’s real gross domestic product (GDP) at market prices was up 12.6% from the previous quarter (-11.9% in the second quarter). Expressed at an annualized rate, real GDP grew 60.6%. This was revealed today in Comptes économiques du Québec, 3e trimestre 2020 published by the Institut de la statistique du Québec.
After declining for two consecutive quarters, domestic demand rose 15.9% in the third quarter of 2020. Both final consumption expenditure (+12.2%) and gross fixed capital formation (+32.2%) rebounded following the historic declines observed in the second quarter. The changes observed in the second and third quarters were the most significant registered since 1981, that is, since comparable statistics have been available.
Household final consumption expenditure was up (+15.9%), after an unprecedented drop (-13.5%) in the second quarter of 2020. Growth in purchases of goods (+19.9%), in particular durable goods (+46.4%), exceeded growth in purchases of services (+11.9%). General governments final consumption expenditure increased by 4.6%.
Business gross fixed capital formation was up 35.0% in the third quarter of 2020, following a 21.2% decline in the previous quarter. Investment in residential buildings (+39.0%) and investment in non-residential structures (+43.1%) are the components of business gross fixed capital formation that posted the highest growth rates. Government investment was also up (+23.2%), mainly in construction (+41.2%).
After declining 17.8% in the second quarter of 2020, total exports of goods and services grew 11.5% in the third quarter. Imports, which had declined more (-24.5%) than exports in the second quarter, posted a stronger recovery (+22.0%). As a results, the foreign trade balance (in volume terms), which was positive in the second quarter, became negative again in the third quarter and was close to the level observed in the first quarter of 2020.
In the first three quarters of 2020, Québec’s real GDP at market prices was 6.0% lower than in the same period last year.
According to data released by Statistics Canada on December 1, Canada’s real GDP was up 8.9% in the third quarter of 2020 (+40.5% at an annualized rate), after declining 11.3% in the second quarter. In the first three quarters of 2020, Canada’s real GDP was 6.0% lower than in the same period last year.
Real gross domestic product at market prices and its main components1 (percentage change)
|Real gross domestic product at market prices||-11.9||12.6||-6.0||-11.3||8.9||-6.0|
|Final domestic demand||-12.6||15.9||-5.2||-11.4||10.8||-5.2|
|Final consumption expenditure||-10.9||12.2||-5.0||-10.7||9.9||-5.2|
|Gross fixed capital formation||-19.8||32.2||-6.2||-13.7||14.0||-5.0|
|Exports of goods and services||-17.8||11.5||-11.3||-18.9||14.5||-10.7|
|Imports of goods and services||-24.5||22.0||-15.2||-23.1||20.9||-13.4|
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).
Québec’s real GDP at basic prices grew 1.1% in September 2020, after increasing 1.0% in August. In all, 18 of the 20 major economic sectors posted growth in September. With this fifth consecutive monthly increase, Québec’s GDP level was more than 97% that of February, despite the unprecedented declines recorded in March and April. That was revealed in Produit intérieur brut par industrie au Québec, septembre 2020 released today by the Institut de la statistique du Québec.
Service industry output was up 1.0% in September 2020. The output level was up in all major service sectors in September 2020, except health care and social assistance (-0.3%). The main sectors that contributed to the increase are professional, scientific and technical services (+2.8%) and educational services (+3.3%).
The output level of goods-producing industries grew 1.2% in September 2020. The main sectors that contributed to this increase were construction (+2.9%) and mining, quarrying and oil and gas extraction (+4.5%). Manufacturing registered a decline (-0.4%).
More specifically, the decline in the manufacturing sector came mainly from the machinery manufacturing (-5.8%), the chemical manufacturing (-5.3%) and the food manufacturing (-2.5%) subsectors.
According to data published by Statistics Canada on December 1, Canada’s real GDP at basic prices rose 0.8% in September 2020. The output of goods-producing industries increased by 0.7%, and that of service-producing industries, by 0.8%.
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