Highlights
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Quebec and Ontario account for three-quarters of Canadian manufacturing, a sector that has been hard hit by the U.S. recession.
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Buoyant domestic demand along with well-filled order books in the aeronautics sector is likely to help the Quebec economy sidestep a severe recession. However, a technical recession is still a possibility. The economy should grow by 0.7% in 2008 and 0.2% in 2009.
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Because of the marked weakness of the external sector, the strength of domestic demand, which finally is not far off its Quebec counterpart, will not be enough to prevent a drop in Ontario’s real GDP in 2009, estimated at 0.8%. The economy should barely grow at all in 2008.
