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Although Quebec has been hit the hardest by COVID-19, it seems to be on the road to a V-shaped recovery. The latest reports show that Quebec is firing on all cylinders, approaching a bright 2022.
Quebec’s Total Exports Are Increasing
Thanks to the US housing market growth, Quebec’s total exports are increasing. Aluminium and forest products make up nearly a third of Quebec’s US sales (30%), which more than doubled the province year-to-date exports.
A 12.2% increase in Quebec’s total exports is great news for industrial CRE property owners in Canada. It means more economic growth, which is forecast to remain strong throughout 2021 and into 2022.
Employment Rates Are Picking Up
Retail and mixed-use property owners in Quebec will be happy to know that employment rates are picking up, fuelled mainly by accommodation and food services.
With construction and education services, those sectors have increased employment in the province by 25%, leaving it at only 3% below the level before COVID-19.
This is all thanks to loosened COVID-19 measures, as 73.8% of Quebec’s population has been vaccinated. The hiring gains are expected to keep growing sustainably.
Consumer Spending Is Higher
Higher consumer spending in Quebec brings more exciting news for retail and mixed-use property owners. A 12% increase in retail sales is undoubtedly just the beginning, as pent-up consumer demand and consumer confidence are bound to keep fuelling the sales.
The sales of building materials have surged by 57%, which is a strong indicator that consumer spending will keep increasing in the upcoming months and well into 2022.
Home Sales Witness a Surge
Housing starts in Quebec are up by 64%, thanks to low-interest rates and increased consumer confidence.
The province witnessed a surge in home sales in January when its municipalities provided residential building approvals for 11,580 multi-family properties. New and existing home sales are expected to keep stimulating residential construction throughout 2021 and into 2022.
Capital Spending Is Expected to Rebound
COVID-19 caused Quebec’s capital spending to decrease by only 5%, which is why experts believe it will rebound quickly and remain strong next year. The latest survey reports show that public and private capital spending in the province will rise by 11% throughout 2021.
Several major projects will boost Quebec’s capital spending well into 2022, so the future undoubtedly looks bright.
A V-shaped recovery is definitely on Quebec’s horizon. The province has the lowest unemployment rate in Canada and shows excellent performance in multiple areas.
Thanks to its continued growth in exports, employment, consumer spending, capital spending, and home sales, Quebec is expected to continue to perform well this year and in 2022.