Montreal's output per person stays near 80% of Toronto's

The Canadian Press reported that a new report by the Institut du Québec, a research group, found that Quebec’s regions have closed the economic gap with Ontario, while the wealth gap between Toronto and Montreal remains. The question is why Montreal still trails Toronto.

Gross domestic product (GDP) is the value of goods and services an economy produces; divided by population, it gives GDP per capita, or output per person. With Toronto and Montreal excluded, Quebec’s figure was 91% of Ontario’s in 2011. By 2022 that figure for Quebec’s regions had reached 99%, nearly closing the gap. But the two cities have not converged: Montreal’s figure remains about 80% of Toronto’s.

Jean-Baptiste Vallantin-Dulac, an Institut du Québec economist, said Montreal has not necessarily performed poorly. He added that Toronto’s economy leans heavily on finance and insurance. The institute warns that the Montreal–Toronto gap may widen unless Quebec reverses its immigration policies to attract a highly skilled workforce.

Sources: BNN Bloomberg · Global News