Quebec’s 2014 economic growth will increase to 1.7% from 1.1% in 2013, says BMO.
Exports and manufacturing have been a drag on the province’s growth, but momentum appears to be changing, BMO says in a new report.
“The combination of stronger U.S. demand and a weaker Canadian dollar will be positive for these sectors,” says Robert Kavcic, senior economist at BMO Capital Markets. “Politics have dominated the province in recent months. From an economic perspective, a majority government returns some political stability to Quebec, which should be positive for business confidence.”
Local manufacturers will continue to face competition from Asia while simultaneously dealing with the fluctuating value of the Canadian dollar, says Mario Rigante, regional vice president, Commercial Banking, Montreal Metropolitan, BMO.
The transportation industry continues to do well in the province, with success due in part to operators transferring the cost of fuel to their clients, allowing them to be better able to manage their long-term costs.