News Releases

MONTREAL, QUEBEC--(Marketwire - June 1, 2011) - Economic growth in Quebec will slow this year to 2.4 per cent, but technology firms are benefitting from a key government program and the high dollar, according to the first edition of the BMO Blue Book, a joint publication of BMO Capital Markets Economics and BMO Commercial Banking. Much like the U.S. Federal Reserve's Beige Book, the BMO Blue Book combines the expertise of BMO's economists with information on current business conditions provided to BMO's commercial bankers by local businesspeople.

"Fiscal stimulus was a major factor supporting Quebec's economy through the recession, but that support has begun to fade as the provincial government is now fully in budget-balancing mode," said Robert Kavcic, Economist, BMO Capital Markets. "Growth will continue at a below-average pace through 2012."

"Quebecers are clearly confident in their future prospects—particularly because of a program unique in Canada that brings together industries, the Quebec government and the banking sector," according to Victor Pellegrino, Vice-President, Commercial, Montreal District, BMO Bank of Montreal. "This gives companies the opportunity to expand, invest in facilities and expand salaries for employees.

"Among those benefiting the most from this program is the technology sector—BMO is seeing a significant amount of lending demand from technology firms, particularly around Montreal," noted Mr. Pellegrino. "With a strong number of high tech firms in information technology and storage, Montreal has become a global player."

The full report can be found at www.bmocm.com/economics.