The Quebec economy continues to surprise with its strength, as the gross domestic product rebounded in the last quarter of 2022 to end the year with very respectable growth of 2.8%.

“The recession that seemed to have started in the third quarter is swept under the rug, at least for now,” commented Desjardins economist Hélène Bégin.

After a third quarter down 1.3%, the Quebec economy came back to life in the fourth quarter thanks to the increase in consumer spending, up 7.3%. The checks distributed by the government of François Legault last December resulted in greater consumption of goods and services. This financial support, as well as salary increases, also pushed the savings rate up. The savings rate rose from 9.3% in the third quarter to 13.9% in the fourth quarter, which is higher than the rate of 6% recorded in Canada, notes economist Daren King, National Bank .

National Bank believes that a recession is avoidable in Quebec, despite inflation and rising interest rates. “The financial situation of Quebec consumers compares favorably to the country as a whole with a savings rate that remains higher and a lower level of indebtedness, assets in the face of current challenges,” said its economist.