Ontario Economy a Bright Light in Challenging Period for Canada
Despite challenges in the wider economy, the latest data shows that Ontario achieved strong growth at the end of 2015, an indicator that many industry experts say is a sign of potential for further economic growth as we move forward in 2016. The Financial Accountability Office (FAO) of Ontario recently highlighted figures showing Ontario achieved 3.5% growth in the third quarter of 2015.
The commentary released by FAO in mid-January highlighted the positive economic factors within Ontario, which led to the growth last year:
“Based on the updated OEA data, it appears that household spending and residential construction were primary drivers of Ontario’s economic growth last year. Business investment in plant and equipment also grew strongly in 2015. Importantly, third quarter growth was broad-based, which is a positive sign for potentially stronger and more balanced economic growth in 2016.”
Financial Accountability Office
The positive numbers produced by the Ontario economy at the end of 2015 and the beginning of 2016 highlight the potential for enhanced productivity for companies across the province. This has been showcased by exceptional performance within the services industry, a key sector for Ontario and a leading reason for Ontario being shielded from the sharp drop in oil pricing impacting Alberta and other provinces.
Manufacturing is another of Ontario’s leading industries, with the province accounting for half the country’s manufacturing sector. The lower price of the dollar is continuing to help many of Ontario’s largest firms build upon their steady performance from late 2015, showcased by Ontario adding 35,000 new jobs in December 2015 alone.
As we move forward in 2016, a confluence of factors is forming to assure a strong foundation for Ontario’s future. We now forward to seeing the progress made in 2016 and beyond.