Bank economists criticize Quebec’s COVID measures to eat at GDP


Quebec’s restrictive policy on COVID-19 has been criticized in Special report About Economics and Strategy published by the National Bank of Canada on January 17th.

More and more calls are being made by foreign institutional investors wondering “what’s happening in Quebec,” wrote Stephen Marion, chief economist and strategist at the bank.

Marion said this question is appropriate because foreign investors hold one-third of the state’s debt compared to 20% in Ontario.

According to economists, Quebec has comparable numbers for COVID-19 cases and ICU admissions similar to other developed countries, but with far more stringent public health measures than the rest of North America. increase.

As a result of these restrictions, national banks had to lower their outlook for real GDP growth in Quebec in 2022 by more than 0.5 percentage points.

“So what is driving our authorities to such rigor?” Asks Marion.

“Insufficient vaccination campaign? On the contrary. Telling clients that more than 85% of Quebec’s population has been vaccinated at least once and 90% of adult Quebec have been vaccinated twice. The eyes are widespread. This is an enviable proportion in many countries. “

Marion then goes into criticism backed by data on Quebec’s planned financial penalties for unvaccinated people.

“In this situation, disciplinary measures clearly and permanently ease pressure on the medical system, especially since we know little about the socio-demographic composition of the unvaccinated and truly vaccinated populations. I don’t think it’s effective. “

Marion said that if 282 COVID-19 patients in the ICU could slow the economy of 8 million people, “there is a medical capacity problem that may require the injection of public funds.” To that end, Health Contribution Ended in 2017.

Economists conclude by warning that inadequate health care systems “should not be a structural impediment to economic growth when COVID-19 is under endemic control.”

Quebec announcement On January 25, measures such as limited meals and personal gatherings at restaurants were gradually lifted, but at the same time, measures for unvaccinated people were strengthened and admission was no longer allowed. Big box store Since January 24th. Banned From January 18th, I stopped entering the state-owned liquor and cannabis stores.

Noe Chartier

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NoƩ Charter is a Montreal-based Epoch Times reporter.