Quebec to send billions to seniors, workers as growth stalls

A sharp decline in economic growth in Quebec won’t stop the provincial government from handing out billions to residents coping with high inflation.

The economy in Canada’s second-largest province will grow just 0.7 per cent next year, according to projections in Finance Minister Eric Girard’s economic and financial update on Thursday. That’s down from a forecast of 2 per cent in his March budget.

Girard confirmed the government plans to spend more than $13 billion (US$9.6 billion) over five years on a fiscal package it’s calling the “anti-inflation shield”. The biggest item is a $8.1 billion tax credit for seniors over 70 — the amount will rise from $411 to US$2,000.

“The economy is definitely slowing, there are risks,” Girard said at a news conference in Quebec City, citing the rapid rise in interest rates. “The cumulative effect of the Bank of Canada’s 400 basis points has not yet reached the economy.”