"Economic Diversity Will Spur Growth"

Gatineau, 25 September 2003 - 

President and Chief Executive Officer of the National Bank tells Outaouais Businesspeople

In his speech to the Outaouais Chamber of Commerce and Industry yesterday, Réal Raymond, President and Chief Executive Officer of National Bank of Canada, called on the members to make the Outaouais one of the most prosperous regions in Quebec by focusing on economic diversification.

Citing the Quebec City region as an example, Mr. Raymond mentioned that Gatineau and the Outaouais could do as well as the provincial capital, which posted the highest growth rate of large cities in Canada in 2001 and 2002 after turning its attention to the high-tech sector. "The Outaouais has the necessary potential and the critical mass of resources to equal or even surpass Quebec City in terms of economic development and job creation. With the highest per-capita income in Quebec, it offers an unparalleled quality of life and boasts three universities, including one right in the heart of Gatineau."

After presenting an overview of the economic picture, which shows a drop in the Canadian GDP in the second quarter of 2003 and a jump in the unemployment rate, Mr. Raymond recalled that the Outaouais was still a strong job creator. However, the jobs it is creating are still, for the most part, in the public service while manufacturing jobs are shrinking. In 2002, that sector shed 1,900 jobs, whereas the federal, provincial and municipal public service created 6,400.

Mr. Raymond acknowledged that the public service has been an important engine of growth for the region's economy. But, he continued, the other side of the coin is that "the level of activity depends on political and budget decisions over which the community has very little control."

Creating value

The President and Chief Executive Officer of the National Bank focused on the approach which, in his opinion, must be taken in order for the region to achieve its full economic potential: create value and diversify the economy. "The region has already launched itself into the knowledge-based economy, with several thousand jobs in technology-related fields. It is already moving in the same direction as Ottawa with its bid to become Silicon Valley North.

Mr. Raymond concluded his address by inviting Outaouais residents to find new economic roles by staying on this promising track. "The Outaouais should promote initiative and further encourage private enterprise. The public service cylinder has taken you far. Hang on to it! But add other cylinders to it, you'll go much further."

About National Bank of Canada

National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its customers elsewhere in the world. The National Bank offers a full array of banking services, including corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management, as well as mutual fund and retirement plan management. The National Bank has more than $75 billion in assets and, together with its subsidiaries, employs over 17,000 people. The Bank's securities are listed on the Toronto Stock Exchange (NA: TSX). For more information, visit the Bank's website at www.nbc.ca.Information (the telephone number and e-mail address provided below are for the exclusive use of journalists and other media representatives):

Josée Lagacé
Public Relations Officer
National Bank of Canada
Tel.: (514) 394-6500
E-mail: josee.lagace@nbc.ca