Québec’s economy continued experiencing sluggish growth in 2013 with real GDP growth of only 1.1%, as compared to 1.5% in the prior year. Québec’s slower growth was driven by the decrease in domestic demand as a result of a striking decline in business investments. The projected growth in Québec’s economy of 1.8% and 2.0% in 2014 and 2015, respectively, will be achieved by an improvement in non-residential investments and continued growth in exports. It will be driven by heightened consumer confidence and the stronger economies of Québec’s trading partners.
The main objective of Québec’s fiscal policy is to return to fiscal balance in 2015-2016, after running six consecutive years of budget deficit. This will be achieved primarily through a better control of government spending, including measures such as general freeze on public staffing levels as well as a reduction in tax expenditures. Furthermore, the budget includes certain actions to promote private investment, including the introduction of the LogiRénov Home Renovation Tax Credit and other general fiscal measures intended to reduce production costs for small and medium-sized businesses.