Quebec‘s Economic Downturn Raises Questions About CAQ‘s Economic Leadership
Quebec City, QC – A sharp economic downturn in quebec, marked by a 2.4% drop in provincial GDP in the second quarter – the largest decline in Canada – is fueling debate over the economic direction of Premier François Legault’s Coalition avenir Québec (CAQ) government. Declining exports, a record trade deficit, and a weakening labor market are prompting questions about whether the CAQ is adequately equipped to navigate mounting economic challenges.
The Institute of Statistics of Quebec reported the GDP contraction this week, alongside a more than 17% slip in exports, and a 28% decline in international trade attributed to U.S.customs tariffs imposed during the Trump administration. The province’s trade deficit has reached an all-time high. Manufacturing activity fell 11.6%,and business investments decreased by 4.8%. Statistics Canada data also indicates Quebec’s labor market is the most deteriorated in the country.
Thes figures arrive as the CAQ prepares to enter the final year of its second term,with Premier Legault scheduled to deliver an opening speech at the National Assembly on tuesday. The timing has intensified scrutiny of the government’s economic policies, particularly its approach to immigration and resource management.
Critics point to the recent abandonment of forest regime reform as evidence of a disconnect between the government and economic realities. The reform faced unanimous opposition,even from within the industry itself,with concerns raised about centralization and the exclusion of municipalities from decision-making processes.
The economic headwinds come amid a broader context of global trade tensions. the article questions whether the CAQ can articulate a vision for the economy that supports wealth creators – entrepreneurs and small and medium-sized enterprises (PMEs) – and addresses the province’s declining competitiveness. The central question emerging is whether the CAQ is truly the economic party it presents itself to be, or if a course correction is needed to address Quebec’s growing economic vulnerabilities.
