The province of Quebec represents one of the most powerful economic engines in all of Canada. In 1997, Quebec's Gross Domestic Product (GDP) was equivalent to $188.4 billion in current dollars, accounting for an increase of 4 percent over the previous year. (All dollar amounts are Canadian unless otherwise noted.) While consumption increased 3.2 percent to reach a total of $108.2 billion in 1997, private investment grew by 5.8 percent to reach a total of $23.2 billion in the same period.

In fact, all sectors of economic activity are clearly firing on all cylinders in the province. Manufacturing shipments reached $101.4 billion in 1997 while retail sales surged to $55.4 billion, accounting for annual increases of 5 percent and 7.1 percent respectively. Of particular note is the recent growth in corporate profits which hit a record $15.9 billion in 1997, representing a 14.5 percent increase over the previous year.

However, as Quebec's economy becomes more intensely knowledge-based, it is interesting to note that traditional industry sectors continue to play an important role, especially in the rural areas of the province. According to Statistics Canada, Quebec's top five export industries, listed in descending order, include information technology, newsprint, aircraft and parts, motor vehicles and sawmill products. This mix of high technology and heavy industry represents yet another example of Quebec's distinctive position in the global marketplace.

Further signs of strong economic growth are evident in the number of new housing starts recorded in the province of Quebec. In total, approximately 25,900 housing starts were noted in 1997, accounting for an increase of 11.6 percent over the previous year. More significantly, over 75.7 percent of all housing starts in Quebec were recorded in urban areas where the total increased by 23.3 percent over 1996.

It is also significant to note that the level of investment and spending in Quebec, has been dramatically influenced by widespread price stability. The absence of inflationary pressures has led to a meager 1.4 percent increase in the Consumer Price Index (CPI), from 1996 to 1997, despite the recent slide in the Canadian dollar. As a direct result, business confidence has been on the rise as new investments have contributed to a declining unemployment rate of 11.4 percent.