OTTAWA, Nov. 21, 2012 /CNW/ - The new measures announced in the budget will have a slightly negative impact on GDP growth in 2013 and 2014, according to The Conference Board of Canada's analysis of the Quebec budget.
The economic outlook is slightly weaker, as program spending growth will be cut from 3 per cent to 2.4 per cent in fiscal 2014-15, which will take about $200 million out of the economy. Moreover, the cut in public infrastructure investment by an annual average of $1.5 billion could shave 0.2 per cent from the Conference Board's forecast for real GDP in Quebec in 2013, released in its Provincial Outlook-Autumn 2012.
On a positive note, Quebec will continue to encourage private investment by extending the tax credit for investment in manufacturing and processing equipment an additional two years to 2017. This move should help productivity growth, which has been lagging the Canadian average for a long time.
Read the full analysis A Cautious Quebec Budget in a Tumultuous Global Economic Environment.
SOURCE: CONFERENCE BOARD OF CANADA
Brent Dowdall, Media Relations, Tel.: 613- 526-3090 ext. 448