Gross domestic product up in second quarter

Québec, September 27, 2016 – Gross domestic product at market prices rose 0.2% in real terms in the second quarter of 2016, an annualized increase of 0.8%. Over the same period, a 0.4% drop was recorded in Canada, for a –1.6% downturn at the annualized rate. Compared with the first quarter of 2015, real GDP grew 1.3% in Québec and 1.0% in Canada. This was revealed in Comptes économiques du Québec, 2e trimestre 2016, a publication of the Institut de la statistique du Québec.

GDP growth came from final domestic demand, while the external trade deficit increased

Final domestic demand rose 0.4% in the second quarter, following a 0.6% increase in the first quarter. Final consumption expenditure was up (+0.4%), mainly from general government consumption expenditure (+0.8%), while that for households experienced a more moderate increase (+0.2%). Fixed capital investment was up (+0.3%) following decreases for seven consecutive quarters.

Final household consumption expenditure was up on account of service expenditure (+0.4%), though goods expenditure remained stable in the second quarter. Non-durable expenditure recorded 0.9% growth, which was sufficient to counterbalance the decreases observed in the purchase of durable (–1.0%) and semi-durable (–1.2%) goods. Fixed capital investment growth was explained by the renewal of business investment (+0.5%), while government investment shrank by 0.5%.

Business investment in residential construction rose 0.4% in the second quarter, mainly on account of new construction (+1.2%); renovation activities experienced moderate growth (+0.1%). Home resale activities dropped 0.5%. Business investment in machinery and equipment rose 1.7%, the second consecutive period of growth, while that in intellectual property inched slightly downward (–0.2%).Investment in non-residential structures remained stable in comparison with the first quarter.

In the second quarter of 2016, total exports of goods and services dropped 1.1% due to a 2.2% decrease in the international export of goods. Exports to the other provinces were stable, the export of services increased +0.4%, which eliminated the –0.4% decrease in goods. Total imports were up 0.3%, with international (+0.3%) and interprovincial (+0.4%) imports experiencing growth at similar rates. Since imports grew more than exports, the external trade deficit rose $2.2 billion to $9.8 billion.

Monthly GDP up in June

Québec’s real gross domestic product (GDP) at basic prices rose 0.1% in June 2016, following 0.3% growth in May and 0.1% growth in April. In Canada, GDP rose 0.6% in June. In Québec, this growth was on account of the gains recorded by services-producing industries (+0.1%). Goods-producing industries also increased their output by 0.1%. This was revealed in Produit intérieur brut par industrie au Québec, juin 2016, a publication by the Institut de la statistique du Québec.

In June 2016, goods-producing industries recorded a 0.1% increase, following a 0.3% drop in May and 0.8% increase in April. The growth in June was mostly on account of the manufacturing sector (+1.2%). Mining, quarrying, and oil and gas extraction also experienced growth (+0.6%), contrary to the output of agriculture, forestry, fishing and hunting ( 4.6%), utilities ( 1.2%) and construction (–0.3%). Service output rose 0.1% in June, following 0.6% growth in May and a 0.1% decrease in April. Significant gains were observed in transportation and warehousing (+0.9%), real estate and rental and leasing (+0.3%), and public administration (+0.8%). Conversely, output levels dropped in retail trade (–0.7%), professional, scientific and technical services (–0.3%), and accommodation and food services (–0.6%).

Manufacturing sector output rose 1.2% in June, following a 1.4% drop in May and a 0.1% drop in April. This increase was mainly on account of a 2.0% increase recorded in durable goods manufacturing. Non-durable goods manufacturing increased by 0.1%.

 


The Institut de la statistique du Québec produces, analyzes and disseminates official, objective and quality statistical information on various aspects of Québec society. It is responsible for carrying out all statistical surveys of general interest. The relevance of its work makes it a strategic ally for decision makers and all those wishing to learn more about Québec.

Sources:

  • Jean-François Fortin
    Phone: 418-691-2411, Ext. 3172
  • Réjean Aubé
    Phone: 418-691-2411, Ext. 3142

  • Information and Documentation Centre
    Phone: 418-691-2401
    or 1-800-463-4090 (toll free in Canada and the United States)

  • Twitter account: http://twitter.com/statquebec