By Canadian Press

Quebec economic update: A lot of uncertainty in 2023, Girard says

Dec 8, 2022 | 1:21 PM

Quebec is announcing help for seniors today in an economic update that responds to stubborn inflation and points to a possible recession and much uncertainty for the coming year. 

Finance Minister Eric Girard says the risk of a recession is more apparent than ever and he anticipates an economic slowdown in 2023, one that could be greater than previously anticipated.

Economic growth is not expected to exceed 0.7 per cent next year, compared to 3.1 per cent for 2022. The 2022-23 provincial budget had been more optimistic, anticipating growth of two per cent in 2023.

Quebec also expects job creation to slow next year, with the unemployment rate — which hit a historic low of 3.9 per cent last April — expected to rise as high as five per cent in 2023.

Girard said the deficit for the 2022-23 fiscal year will be $5.2 billion, less than the budget forecast of $6.5 billion, with the target for a return to a balanced budget still expected in 2027-28.

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Inflation has put pressure on many households but has allowed the province to reap substantial additional revenues, about $14 billion since March. In 2022-23, revenues are expected to increase by 4.3 per cent.

Girard says the government has decided to return those funds to Quebecers, announcing a key measure today to help those 70 and older by increasing a refundable tax credit to $2,000 from $411, a recurring measure that will cost the province $8 billion over five years.

This report by The Canadian Press was first published Dec. 8, 2022.

The Canadian Press