The credit rating agency rang the alarm over the province’s $11-billion deficit in its most recent budget, released Tuesday, noting it was more than double last fiscal year’s deficit. While Quebec’s GDP stagnated in 2023, Moody’s warned the province likely faces lower tax revenues as households spend less and businesses scale back amid inflationary pressures—along with its own tax reduction efforts. (The Logic)

Talking point: It wasn’t all bad news from the agency, which noted the province’s unemployment remains low and wages are likely to increase in 2024. “This helps support our view that the economy will recover and provide greater support to revenue generation in 2025 and beyond, supporting the multi-year fiscal plan of the province,” Moody’s report said.