Transition Binder 2021

Table of Contents

• Canada Economic Development for Quebec Regions (CED)
• We are present in all regions, at the heart of each distinct economic dynamic
• A unique approach: Focusing on Quebec as we implement federal priorities
• We act based on economic issues specific to Quebec
• We are adjusting to a variable economic recovery
• Our priority actions respond to the economic issues facing Quebec’s regions
• Our programs and initiatives are flexible and adapted
• Our clients: SMEs and the organizations that support them
• Our projects: Some examples
• Our budgets: Profile and evolution of our expenditures
• Tangible results and benefits
• CED at a glance

Canada Economic Development for Quebec Regions (CED)

Mission:

“Promote the long term economic development of the regions of Quebec by giving special attention to those where slow economic growth is prevalent or where opportunities for productive employment are inadequate.

Promote cooperation and complementarity with Quebec and communities in Quebec.”

- Section 10 of the Act

We are present in all regions, at the heart of each distinct economic dynamic

Text version: Regions of Quebec

CED has a head office in Montreal and 12 business offices (including an Inter-regional Initiatives Directorate) that cover the entire territory of Quebec:
• Gaspésie–Îles-de-la-Madeleine
• Côte-Nord
• Bas-Saint-Laurent
• Abitibi-Témiscamingue – Nord du Québec
• Saguenay–Lac-Saint-Jean
• Québec – Chaudière-Appalaches
• Mauricie
• Centre-du-Québec
• Cantons-de-l’Est
• Greater Montreal
• Outaouais
• Inter-regional Initiatives Directorate

Of the 104 RCMs in Quebec, 71 have low economic development potential. The 33 RCMs with high economic development potential are located in the territories of the following business offices:
• Abitibi-Témiscamingue – Nord du Québec
• Saguenay-Lac-Saint-Jean
• Québec – Chaudière-Appalaches
• Mauricie
• Centre-du-Québec
• Cantons-de-l’Est
• Greater Montreal
• Outaouais
• Inter-regional Initiatives Directorate

• A head office in Montréal and 12 business offices rooted in the regions
• On the ground knowledge of factors influencing the development of each region
• Adapted financial support and accompaniment through actions centred around SMEs and the organizations supporting them

Our aim: To create the right conditions to foster economic growth in every region, based on their respective realities

Our priorities for action: To respond to issues as they are experienced on the ground

Our approach: Flexible, community focused, in collaboration with the Government of Quebec, key stakeholders, our federal partners

A unique approach: Focusing on Quebec as we implement federal priorities

National Priorities

• Implemented based on actual needs in the field
• Fuel reflections on priorities

Place-based approach

Flexible implementation

• Flexible, differentiated program terms depending on fields of action
• Modulated actions based on local realities, for results that meet real needs, while implementing federal priorities
• Ability to adapt to one-time needs and rapid execution

Credible antennas in the field

• Regional anchoring
• Field intelligence: How challenges are experienced and addressed and how our policies and programs must be responsive
• Engagement with provincial, regional and local players to strengthen federal relevance

Coordinated response when possible

• Complementary, synergistic actions, intersectoral cooperation, as well as among different levels of government
• Seeking out leverage effects and coherent action with community stakeholders
• Possibility of fostering linkages, especially among SMEs and prime contractors

Adapted design of programs and interventions

• For a diverse clientele: SMEs, NPOs, including tourist attractions, technology transfer centres, industrial clusters, incubators/accelerators, etc.
• For a range of structural projects that leverage the regions’ comparative advantages, regardless of sector
• Through flexibility financial tools to provide direct and indirect support, including:
  • Repayable interest-free contributions for commercial projects (SMEs)
  • Non-repayable contributions (NPOs)

We act based on economic issues specific to Quebec

Structural Issues

• Population: 8.59M (22.5% of Canadian population)
• Median age: 42.7 years
• 14% immigrants (22% for Canada)
• 82% in urban areas representing 10% of the territory

Economy - Currently strong, but still below its demographic weight

• 19.1% of Canada’s GDP
• Growing, low unemployment rate – but hindered by labour shortages
• Diversified economy based on small businesses, centred around services and manufacturing (255,350 SMEs) – but behind in investments, productivity, entrepreneurship and market diversification
• 18.1% of investments in Canada
• 17.5% of international exports

Regions - Realities vary from one region to the next

• Major disparities among major centres, medium-sized cities and rural territories (connectivity, sectors, job creation and types)

Impacts of the Pandemic

An economy on hold

• Drop in nominal GDP: -5.3% in 2020 (+4.3% in 2019), including -10% for monthly GDP in March
• Initial employment slowdown at 2002 level
• Quebec’s manufacturing sector in 2020: The 3rd greatest annual decline in GDP in Canada (-9.1%)

A strong recovery

• Vigilance around the rise of a 4th wave
• April 2021: Quebec’s GDP exceeds pre-pandemic levels, at $382 billion
• In July 2021, one of the lowest unemployment rates; the hardest-hit sectors continue to be accommodation and food service

We are adjusting to a variable economic recovery

Good prospects in most major regional sectors, but some uncertainty still lingers.

Growth sectors In growth

Taking advantage of opportunities, in recovery mode

Factors:

• Infrastructure and residential construction
• Teleworking
• Online sales
• Digital acceleration
• Resilient supply chains
• Greater production capacity

Sectors under adjustment Under adjustment

Maintaining a certain level of activity and leveraging opportunities

Factors:

• Substitution effect: Increase in domestic tourism, grocery expenses, sales in product sub-categories, trend towards local buying
• Suppliers and sub-contractors are adapting

Sectors in difficulty In difficulty

Still being hit hard by the impacts of COVID-19

Factors:

• Lower demand for air transportation
• Border closures
• Cancellation or delay in the delivery of new devices