Real GDP growth in the two cities to increase to 1.9% this year
In its latest report, The Conference Board of Canada predicted that the trend of real estate driving economic strength in Quebec’s leading metropolitan markets will lead to sustained growth this year.
The Board’s recently released “Metropolitan Outlook: Spring 2017” study projected real GDP growth in Quebec City and Montreal to increase to 1.9 per cent in 2017.
“Quebec’s two largest metropolitan economies continue to pick up speed and are expected to post stronger growth this year,” according to Alan Arcand, associate director with The Conference Board of Canada. “Montreal’s economic improvement is being driven by massive infrastructure investments and an accelerating manufacturing sector, while widespread gains across Quebec City’s services sector, including in real estate and tourism, is supporting stronger growth in the provincial capital.”
In Quebec City, the services sector (which currently accounts for over 80 per cent of the city’s economy) will see generous growth this year, along with tourism.
“[The] finance, insurance and real estate industry is poised to bounce back after three years of lacklustre growth, thanks in part to strong commercial and industrial real estate activity in Quebec City and Levis,” the study noted.
In Montreal, the construction sector is expected to rally after a four-year trend of decline, “thanks to work on the Champlain Bridge and Turcot Interchange, the Bonaventure and Ville-Marie Expressways, the city's three-year $6.4 billion infrastructure plan and $6 billion light-rail project.”
However, “residential construction activity remains tepid, as high inventories of multi-family units continue to scare off builders. Overall, construction output growth is projected to reach 2.1 per cent this year.”
The full study can be accessed from this portal.
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The full study can be accessed from this portal.
Related stories:
Montreal market reaches record highs for April performance - report
