In this election year, the government of François Legault is in luck.
An all-time record will be achieved in 2022 in Quebec in terms of private and public investment in non-residential fixed assets.
This suggests that the Quebec economy is doing well. Very well even.
Like what, when the building goes, everything goes! In light of the polls that suggest a resounding victory for the Caquists, this is an adage that fits them like a glove.
According to the Institut de la statistique du Québec (ISQ), spending on “non-residential tangible capital assets” will reach $53.1 billion this year, or $5.6 billion more than in 2021. Up 11, 8%.
“Non-residential tangible fixed assets”, explains the ISQ, include durable assets such as: building, engineering works, equipment and tools.
BREAKDOWN OF EXPENSES
Spending in 2022 of $53 billion is broken down as follows in terms of assets:
- Construction spending: $34.4 billion
- Equipment and tooling expenditure: $18.4 billion
In terms of industry, the “goods” sector accounts for $18.5 billion of non-residential capital expenditures and the “services” sector attracts expenditures of $34.6 billion.
In terms of ownership, the “private” sector intends to spend $25.6 billion this year, including $5 billion by foreign companies and $20.6 billion by Canadian-controlled companies.
For its part, the “public” sector, ie the federal, provincial and municipal levels of government, plans to make investments in the order of $27.5 billion.
On the “administrative regions” side, here are those that will monopolize the highest expenditure in non-residential tangible fixed assets in 2022:
- Montreal: $16.1 billion
- Monteregie: $6.5 billion
- Capitale-Nationale: $4.7 billion
- North Shore: $2.6 billion
- Laurentians: $2.6 billion
- Saguenay–Lac-St-Jean: $2.4 billion
- Estrie: $2.3 billion
- Abitibi-Témiscamingue: $2.2 billion
By the way, this is the first time in Quebec history that we will exceed the $50 billion mark in capital expenditures!
CAQUISTES vs LIBERALS
During the four years of the CAQ reign of François Legault, private and public investments in fixed assets will approach a total of 190 billion dollars.
It is still 40 billion more, even 27% more, than under the previous Liberal reign of Philippe Couillard. From 2015 to 2018, said capital expenditures reached $150 billion.
Summary of capital expenditures over the past four years under the Legault government:
- 2019: $45.8 billion
- 2020: $43.2 billion
- 2021: $47.5 billion
- 2022: $53.1 billion
Even in 2020, in the midst of the COVID-19 pandemic, capital expenditures remained surprisingly high.
CANADIAN BEMOL
Although Quebec has recorded a historic record this year in terms of non-residential property, plant and equipment investment expenditures, the fact remains that its level of expenditures represents only 17.8% of all Canadian expenditures will reach $298 billion by the end of this year.
This is significantly lower than the weight (22.8%) of the population of Quebec in Canada.
We can always take comfort in comparing ourselves to Ontario, whose capital expenditures ($99 billion) represent 33.1% of total Canadian expenditures, or 5.7 percentage points less than the weight of its population (38. 8%).
You will probably not be surprised to learn that in Alberta, the Canadian kingdom of oil production, the weight of capital expenditure (19% of Canada) far exceeds the demographic weight (11.6%) of the province. .
In 2022, capital expenditures will reach $57 billion in Alberta.
It’s good.
But it’s still 40 billion dollars less than in 2014
