Quebec - Economy

Economy

Quebec has an advanced, market-based, and open economy. In 2009, its gross domestic product (GDP) of US$ 32,408 per capita at purchasing power parity puts the province at par with Japan, Italy and Spain, but remains lower than the Canadian average of US$ 37,830 per capita. The economy of Quebec is ranked the 37th largest economy in the world just behind Greece and 28th for the gross domestic product (GDP) per capita.

The economy of Quebec represents 20.36% of the total GDP of Canada. Like most industrialized countries, the economy of Quebec is based mainly on the services sector. Quebec's economy has traditionally been fueled by abundant natural resources, a well-developed infrastructure, and average productivity. The provincial GDP in 2010 was C$ 319,348 billion, which makes Quebec the second largest economy in Canada.

The credit rating of Quebec is currently rated Aa2 according to Moody's rating agency and A+ by S&P. The Quebec economy has changed dramatically in recent years. Between 1995 and 2001, the credit rating of Quebec was rated A2 by Moody's, considered the worst rating in Quebec's history. The provincial debt has reached 47% of GDP in 2011 which represent approximately C$129 billion or C$16 642 per inhabitant. The government of Quebec has announced it will reduce the provincial debt by 25% by 2025.

Quebec's economy has undergone tremendous changes over the last decade. Firmly grounded in the knowledge economy, Quebec has one of the highest growth rate of gross domestic product (GDP) in Canada. The knowledge sector represents about 30.9% of Quebec's GDP. Quebec is experiencing faster growth of its R&D spending than other Canadian provinces. Quebec's spending in R&D in 2011 was equal to 2.63% of GDP, above the European Union average of 1.84% and will have to reaches the target of devoting 3% of GDP to research and development activities in 2013 according to the Lisbon Strategy. The percentage spent on research and technology (R&D) is the highest in Canada and higher than the averages for the Organisation for Economic Co-operation and Development and the G7 countries. Approximately 1.1 million Quebeckers work in the field of science and technology.

Quebec is also a major player in several leading-edge industries including aerospace, information technologies and software and multimedia. Approximately 60% of the production of the Canadian aerospace industry are from Quebec, where sales totaled C$ 12.4 billion in 2009. Quebec is one of North America's leading high-tech player. This vast sector encompassing approximately 7,300 businesses and employ more than 145,000 people.

The mining industry accounted for approximately 6.3% of Quebec's GDP. It employs approximately 50,000 people in 158 different companies.

The pulp and paper industries generate annual shipments valued at more than $14 billion. The forest products industry ranks second in exports, with shipments valued at almost $11 billion. It is also the main, and in some circumstances only, source of manufacturing activity in more than 250 municipalities in the province. The forest industry has slowed in recent years because of the softwood lumber dispute. This industry employs 68,000 people in several regions of Quebec. This industry accounted for 3.1% of Quebec's GDP.

Agri-food industry plays an important role in the economy of Quebec. It accounts for 8% of the Quebec's GDP and generate $19.2 billion. This industry generated 487,000 jobs in agriculture, fisheries, manufacturing of food, beverages and tobacco and food distribution.