Question Period Note: Challenges related to the economic context

Challenges related to the economic context

• Due to its in-depth knowledge of the issues facing Quebec's SMEs and communities, Canada Economic Development for Quebec Regions is able to respond appropriately to their need.

• Canada Economic Development for Quebec Regions supports the productivity, innovation and market development of Quebec SMEs to help them face challenges such as inflation, labour scarcity and climate change.

• Through its interventions, Canada Economic Development for Quebec Regions helps communities bring their development projects to fruition so that they can participate fully in the economy and meet the challenges of diversification and adaptation they face.

Present in all regions of Quebec through its twelve business offices, Canada Economic Development for
Quebec Regions makes strategic investments that enable businesses and communities to seize opportunities and prosper.

• International economic uncertainty in recent years, including geopolitical tensions and the resulting protectionist industrial policies in some cases, represent transformational changes that require Quebec companies to invest, innovate and improve productivity to maintain their global
  competitiveness.
• Over the past year, inflation in Canada has reached a 40-year high. In addition, in many countries, monetary tightening is exerting downward pressure on economic activity, increasing the cost of
  borrowing for businesses, particularly at a time when they need to invest to go digital and green.
• The Quebec economy has resisted economic shocks well, due to its diversity and resilience. The manufacturing industry, in particular, plays a key role for the Quebec economy. However, structural challenges persist in terms of labor availability, productivity and investment.
• The province is faced with a major workforce challenge: among the ten Canadian provinces,
  Quebec is the one with the highest rate of vacant positions. Digital and automated solutions are
  one of the main answers to this challenge, in addition to the use of foreign workers and
  immigrants.
• Quebec and Canada show a chronic delay in productivity, more specifically in relation to Europe
  and the United States. Innovation, and in particular the adoption of new digital technologies, is essential for productivity gains and business growth.
• The regions of Quebec face different challenges in terms of economic development, due to their
  industrial structure, their economic dynamism and their specific competitive advantages.
• Urban regions constitute essential engines of the Quebec economy, with key industries such as
  aerospace, ICT, life sciences and clean technologies.
• The long-term growth of manufacturing regions will go hand in hand with the technological
  modernization of this important sector for Quebec. Resource regions, for their part, must deal
  with additional challenges linked to demographics, remoteness and lack of infrastructure.
• Finally, the impact of extreme weather events and climate change remains a growing concern, and the contribution of Quebec SMEs that have embarked on their green transition is essential to
  achieving greenhouse gas reduction targets, notably through the adoption of eco-responsible
  business practices and strategic investments in clean technologies.

Canada Economic Development for Quebec Regions supports the vitality of communities and helps
entrepreneurs bring their business projects to fruition, at every stage of their development, in order to foster
their growth and meet economic challenges through interventions tailored to their needs, through its regular
programs as well as special initiatives.