Positive Growth Outlook for Ontario
August 12, 2016
With growth of 2.8% this year, Ontario is among the few provinces expected to see economic growth much stronger than the national average. That’s according to the Conference Board of Canada’s Provincial Outlook: Spring 2016.
“Unlike other provinces more dependent on natural resources, Ontario is benefitting from favourable terms of trade that improve the competitiveness of Canadian goods and services on international markets,” said Marie-Christine Bernard, Associate Director, Provincial Forecasting. “The province is on much stronger ground, with job creation fueling consumer demand and a pick up in exports helping to bolster economic growth.”
- Real GDP is expected to increase by 2.8% in 2016 and 2.6% in 2017.
- Employment growth is running at twice the pace of the national average.
- Consumer demand for durable and semi-durable goods will boost real household consumption by 3.2%.
Ontario’s exports have been advancing at a strong pace due to U.S. demand for autos and auto parts. Exports in Ontario are expected to increase by 5.3% in 2016. Even with the anticipated contraction in the automotive sector, trade exports will continue to increase in 2017. However, business investment in non-residential structures, and machinery and equipment will advance at a modest pace over the next two years.