Ontario Economy Expected to Return to Top Spot Among Provinces
Great news for Ontario – a report by CBC News Toronto says that the province is surpassing all others economically, and that Canadian banks are expecting Ontario to soon have the top economy once again.
Businesses in Ontario are reporting increases in corporate profits and these profits are translating into a strong labour market and falling unemployment. Currently, unemployment in Ontario is at its lowest in 16 years and the Bank of Canada says that Ontario businesses are investing in new equipment and more staff.
Higher corporate profits also mean a larger tax revenue for the province. CBC says that Ontario’s corporate tax revenue grew by 19.6 per cent in 2015 and by a further 16.8 per cent in 2016.
However, the economic growth is not equally distributed throughout the province. The bulk of the growth is centered around the Toronto area, with the Windsor, Ottawa and Kitchener-Guelph areas seeing improvements as well.
Likewise, concerns about the Ontario economy abound, with uncertainty surrounding protectionist sentiment in the United States and the future of NAFTA. The province’s economy is also tied to the strength of the Canadian dollar and is vulnerable to strong currency fluctuations.
Unfortunately, CBC says, personal finances in Ontario aren’t keeping up with the growth in the province’s economy. According to Statistics Canada, Ontario residents saw their average weekly earnings increase by only 1.1 per cent in 2016, a rate less than inflation.
The Ontario housing market was also spotlighted by CBC, with a note that it now accounts for the largest share of the province’s GDP (13.2 per cent), followed by manufacturing at 12.1 per cent.