ECONOMIC OVERVIEW OF THE QUEBEC CITY METROPOLITAN AREA

PRESENTATION DFAITOCTOBER 3rd, 2011

Québec International contributes to the Quebec Metropolitan Area’s economic development and enhances its international status by supporting keys sectors, fostering business growth and attracting talent and investment to the region.

ABOUT QUÉBEC INTERNATIONAL

OUR MANDATES- Attracting foreign investment

- Attracting qualified foreign workers

- Promoting the region’s competitive business environment

- Supporting trade and market development

- Fostering business competitiveness and cluster development through innovation and access to financing

OUR BUSINESS LINES

- Business growth support

- Economic reporting and strategic monitoring

- Investment prospecting and promotion

- Cluster development and support

REGIONAL ECONOMIC CONTEXT The Quebec City region recorded one of Canada’s highest growth rates in 2010 - GDP: +2.9% in 2010 - Employment: + 15,000 jobs/unemployment rate: 4.9% - Investments: $17 billion will be invested by 2020

For 2011 - More modest growth in 2011: +2% - A number of jobs have yet to be filled - Many residential and non-residential projects under way - Personal incomes are still catching up gradually

PRESENTATION OF ECONOMIC INDICATORS

REAL GDP : SUSTAINED GROWTH FOR THE QUEBEC CITY CMA IN 2010 Quebec City CMA

Sustained growth in 2010: +2.9%All sectors contributed to growth in 2010No rebound effect as in most other Canadian census metropolitan areas (CMAs)

Average annualized growth rate (%)Quebec City CMA Average for other

Canadian CMAs1990-1995 +1.1% +1.8%1995-2000 +2.8% +4.4%2000-2005 +2.7% +2.8%2005-2010 +2.2% +1.9%2010-2015p

+2.2% +3.0%

Sources: Conference Board of Canada and Quebec International

Québec Toronto Calgary Vancouver-5.0-4.0-3.0-2.0-1.00.01.02.03.04.05.0

2.2

-0.2

1.4

0.30.8

-2.7

-4.4

-1.3

2.9 3.9

3.0 3.9

2008 2009 2010

Annual change (%)

Sources: Conference Board of Canada and Quebec International

$18.3 BILLION SPREAD OVER 346 ONGOING PROJECTS AND ANNOUNCED$11.5 billion spread over 220 projects in progress137 private projects $8.1 billion23 projects of foreign companies $3.9 billion28 projects of key sectors $3.2 billion57 residential projects $2.4 billion83 publics projects $3.4 billion$6.8 billion will be invested in 126 projects61 private projects $3.2 billion13 projects of foreign companies $2.3 billion7 projects of key sectors $182 million16 residential projects $ 515 million65 publics projects $3.6 billionSources : Indicateur des projets au Québec and Quebec International

QUEBEC CITY CMA: THE LOWEST UNEMPLOYMENT RATE IN CANADA

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20104.04.55.05.56.06.57.07.58.08.59.09.5

8.1

4.5 4.9 4.9

8.5

5.7

8.7

6.8

Quebec City CMA Quebec Ontario Canada

%

Sources : Statistics Canada, Quebec Institute of Statistics (ISQ) et Quebec International

Canada &Quebec8 %

ENVIABLE ECONOMIC VITALITY SUPPORTED BY SIX KEY SECTORS

SIX KEY SECTORSInsurance and financial servicesFood processing Health foodsEnvironment and energy Environmental services and green technology

Oil, natural gas, clean energyIntelligent green buildings

Life sciences BiopharmaceuticalsMedical technologyNatural health products

Transportation equipment and materials

Plastics and composite materialsWood processingMetal productsTransportation equipment

ITC and electronics Multimedia creation/interactive entertainmentOptics/photonics, geomatics and geospace technologiesSecurity, defence and emergency preparedness

KEY INDUSTIES OVERVIEWOur niches of excellence

Turnover Number of jobs Number of companies

Research centres Number of researchers

ICT & Electronics $ 1.8 billion 17,650 550 50 2 000

Food Processing $ 2.1 billion 10,622 187 13 414

Life Sciences $ 1.2 billion 6,400 139 84 3,900

Finance and Insurance

$ 6.1 billion* 16,500 300 ------- -------

Tourism $ 940 million 18,900 2043 ------- -------

Secondary and Tertiary Processing $ 5.5 billion 28,800 878 22 325

Data compiled for the Québec City metropolitan region Note : * Turnover in Finance and Insurance based on GDP at market pricesSource : Quebec International

These sectors include 100,000 jobs through 4,300 companiesThese sectors contributed to the creation of approximately 60% of new jobs in the region over the past 5 years.

Our clusters have a turnover of $18 billion.Represent 75% of regional GDP.20 FDI projects completed over the past five years valued at $500 million.These sectors together 6,000 researchers and assistants in 5 universities and 170 centers, chairs and research consortia

The average salary is approximately $63,300 – Province of Quebec ($58,000)

The average age in the Life Sciences and ITC/Electronics sectors is between 30 and 35 years old.

MAJOR BENEFITS FOR OUR SECTORS OF EXCELLENCE

THANK YOU

Quebec InternationalEconomic Development Agency

418-681-97001-877-681-9700

info@quebecinternational.cahttp://quebecinternational.ca/services