Quebecers are rightly involved financially

YES! Primarily based on the outcomes of the Léger ballot, Quebecers have each purpose to be involved about meals and fuel costs and rates of interest.

From January 2021 to July 2023, meals costs in Quebec elevated by 21.6%. Gasoline costs rose by 51.2%. And the Financial institution of Canada’s rate of interest skyrocketed from 0.25% to five.0% over the identical interval, fueling an explosion in curiosity expense on private loans, auto loans and mortgages.

Take into account the typical mortgage charge for the five-year time period. It rose from 3.30% in January 2021 to five.99% on the finish of July final yr, a rise of 81.5%. Worse nonetheless, the prime charge, which serves as the premise for the variable mortgage charge, has nearly tripled, rising from 2.45% to 7.2%. This elevated the month-to-month mortgage invoice by 31%.

In the event you add up all bills for housing building, it prices us 15.3% extra immediately than in January 2021. The value of heating oil alone has risen by 57%.

Given their respective weights within the “Client Value Index Basket”, ie a 25.5% weight for housing, a 17.1% weight for transport and a 17.9% weight for groceries, it’s not shocking that the price of dwelling in Quebec has risen sharply since early 2021.

Actually, Statistics Canada’s Client Value Index (CPI) in Quebec is up about 15% since January 2021.


Over the identical two-and-a-half yr interval, common weekly earnings for Quebec staff elevated by simply 9.9%, 5.1 proportion factors lower than the price of dwelling. Common weekly earnings elevated by $103.69 from $1049.69 (January 2021) to $1148.38 (July 2023). Assuming 52 weeks of full-time employment, this interprets to gross annual revenue of $59,716, or $4,976 per thirty days.

Based on the Appartogo web site, the typical month-to-month rental worth throughout the province is at the moment:

– $1484 for a 3 1/2 ($1610 Montreal)

– $1673 for a 4 1/2 (1944 $ Montreal)

– $1954 for a 5 1⁄2 ($2265 Montreal)

It’s understood that with a mean wage of $4,976 per thirty days, a single individual or single-parent family spends greater than 30% of their gross revenue on renting their residence.


Apparently, the Financial institution of Canada’s sharp hike in rates of interest ended up slowing the speedy tempo of inflation, sadly at the price of impoverishing low- and middle-income households.

Based on the newest forecasts by Desjardins economists, the inflation charge, which is forecast at round 4% this yr, is more likely to fall to 2.4% subsequent yr. If the forecast proves right, the Financial institution of Canada’s vital tightening of financial coverage could have managed to beat runaway inflation, which has “pressured” it to lift rates of interest by 0.25% (in early 2022) to five. 0% to lift (At present).

The excellent news behind this forecast of falling inflation? The top of financial tightening is drawing close to, suggesting that rate of interest hikes will finish quickly, in the event that they haven’t already. And from early 2024, we are going to see an incipient decline in stated coverage charge, which may fall to three.25% as soon as it hits the ultimate quarter of subsequent yr.

However within the meantime, Quebec’s financial system will undergo. A slowdown in financial progress is inevitable. From 11.8% in 2021 to 9.7% in 2022, nominal GDP could be content material with progress of simply 2.5% this yr. Subsequent yr will probably be even worse with a meager 1.3% progress.

One other space of ​​concern: projections for job creation. Based on Desjardins, it is a actually unhealthy signal as a result of in 2024 we’d lose 30,000 jobs. And that the unemployment charge would rise above the 6.0% mark, a nasty soar of 1.6 proportion factors from the present degree (4.5%). In January final yr, the unemployment charge was simply 3.9%.

The noticed weak point in housing begins (36,000 in 2023 and 37,000 in 2024), down 40% from the earlier two years, doesn’t bode properly for Quebec’s combat in opposition to housing shortages and rising rents.


The opposite indicators of weak point in Quebec’s financial system recognized by economists in latest months are:

– Lack of consumption dynamics

– Declining manufacturing gross sales and items exports

– A decline in employment

– A fall in actual GDP

– Critical penalties of forest fires

The truth that Quebec’s financial system has carried out comparatively properly up to now is due to Quebec’s robust family spending.

Desjardins economists Hélène Bégin and Marc Desormeaux clarify: “A number of components that propelled Quebecers’ incomes and financial savings charge by way of the top of 2022 clarify this resilience.” […] [L]The Québec authorities’s monetary assist measures for households have [notamment] had been essentially the most beneficiant Canadian provinces final yr.”

It could be this beneficiant monetary assist that explains why the 15% enhance in Quebec’s CPI since January 2021 exceeds the rise recorded throughout Canada and Ontario (14.4%).

Numbers that talk

Quebec in numbers

Indicators (Forecasts) 2023 2024 hole
whole inhabitants 8,773,426 8,840,285 66,859
Nominal GDP 2.50% 1.30% – 1.2 factors/%
Nominal GDP/capita $59,810 $60,426 1.00%
Disposable revenue / residents $38,735 $39,703 2.50%
job creation 82,000 -30,000 -112,000
unemployment charge 4.50% 6.10% + 1.6 factors/%
Housing building begins 36,000 37,000 1,000
Promoting worth / home $426,764 $416,522 ($32,242)
inflation charge 4.00% 2.40% -1.6 factors/%
actual GDP progress) 0.60% 0.20% -0.4 factors/%

Supply: Desjardins, Financial Research

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