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MONTREAL, QUEBEC--(Marketwired - May 4, 2015) - Quebec's economy is poised to pick up this year thanks to the stronger U.S. economy and improved business confidence, according to the BMO Blue Book released today by 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.

"The economic climate in Quebec continues to improve, and business owners remain cautiously optimistic," said Mario Rigante, Senior Vice President, Quebec Division, BMO Bank of Montreal. "Local businesses are taking advantage of a rebounding economy in central Canada, a lower dollar and a low interest rate environment to help expand their businesses."

"Real GDP will likely grow 2.1 per cent this year, up from a 1.4 per cent clip in 2014," said Robert Kavcic, Senior Economist, BMO Capital Markets. "Looking ahead, growth should hold at 2.0 per cent in 2016 as net exports benefit from stronger sales to the U.S. and the impact of past weakness in the Canadian dollar. The political and fiscal landscape has also stabilized, which should support business confidence and investment."

The labour market is showing tentative signs of improved momentum. Employment was up 0.6 per cent year over year in the first quarter, and the jobless rate sat at 7.5 per cent in March - down from above 8 per cent last summer," stated Mr. Kavcic.

The improving strength of the U.S. economy will support a number of manufacturing customers who will benefit from renewed growth south of the border. Transportation is another area that is seeing a strong resurgence, thanks to lower fuel costs and increased exports to the U.S, and, with the construction of two new super-hospitals in Montreal, the health sector has potential for substantial growth in the coming years as well.

Additionally, momentum appears to be turning positive for exports and business investment. "Net export volumes improved for a second straight year in 2014, and the value of exports was up a strong 18 per cent year over year in the latest three months, led by aerospace, machinery and electrical equipment," noted Mr. Kavcic.

The full BMO Blue Book can be downloaded at www.bmocm.com/economics.

About BMO Financial Group

Established in 1817, BMO Financial Group is a highly diversified financial services provider based in North America. With total assets of approximately $672 billion as of January 31, 2015, and more than 46,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets.