Highlights
- According to the Office of the Superintendent of Bankruptcy, the Quebec City census metropolitan area (CMA) recorded 1,868 bankruptcies in 2012, down 2.6% from 2011. This is the lowest level observed in seven years.
- The number of bankruptcies declined among businesses (-10.3%) as well as consumers (-2.1%).
- Despite the increase in the number of bankruptcies in the fourth quarter of 2012 (+9.1%), the full-year results were very encouraging.
- In 2012, there were a total of 1,884 bankruptcies in the Quebec City administrative region (Capitale-Nationale), an annual increase of 1.3%. In the Chaudière-Appalaches region, the number fell by 3.7% to a total of 896.
- The province of Quebec recorded 25,887 bankruptcies in 2012, an annual decrease of 4.8%. Across Canada, 74,731 consumers and businesses filed for bankruptcy, down 8.5%.
Commentary
Employment market growth (+ 2,300 jobs), higher per-capita personal income (+3%) and low interest rates all contributed to consumers’ good financial health in the Quebec City CMA. In 2012, 1,755 people filed for bankruptcy, or 37 fewer than in 2011. The gain of 6,100 jobs in the first quarter of 2013 should serve to prolong the downtrend.
The corporate picture also improved in the Quebec City CMA in 2012. According to the Office of the Superintendent of Bankruptcy, 113 companies filed for bankruptcy, or 13 fewer than in 2011. Despite persistent uncertainty and the fragile global economic recovery, the business community is apparently able to adjust. Regional industrial diversification, innovativeness and export market development are all favourable factors for the industrial sector.
Louis Gagnon
Senior Economist
Québec International
