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Quebec economy takes a hit in Q2

Published by Steve Coleman on September 23, 2011

This spring's predictions about Quebec's economy taking a harder hit than the rest of Canada turned out to be true.

The Desjardins group's projections that weaker consumer spending and a bad string of weather would take a bite out of Quebec's real GDP bore fruit on Sept. 23.

While GDP in the rest of Canada fell a combined 0.4 per cent for the second quarter, Quebec's economic output fell 0.8 per cent.

A large part of that may have been due to retooling. Desjardins said business investment in machinery and equipment rose 10.7 per cent during the quarter, but plant construction projects "took a break."

Quebec's trade deficit increased from $33.5 billion to $36.3 billion (2002 dollars) during the second three-month period. Fewer exports and more imports helped widen the gap.

A major rise in stock, up $4.6 billion in 2002 dollars, helped cap the real GDP's fall during the quarter, Desjardins said.

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