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: A Look at Ontario’s Economy

Ontario is a leader in economic growth and job creation at a time when the world is facing economic uncertainty. Lower oil prices, a more competitive Canadian dollar and a solid U.S. economy have helped Ontario’s economy grow and create jobs, and these factors should help this growth continue.

While the government recognizes the uncertainty that people in Ontario and Canada are facing, Ontario’s economy is projected to be one of the fastest growing in Canada. The government’s plan is building new partnerships and making strategic investments to continue growing the economy and creating more jobs. More than 600,000 jobs have been created since the recessionary low in June 2009. Ontario is projected to create more than 300,000 jobs by the end of 2019, which would bring the total to more than 900,000 net new jobs over a 10-year period.

Jobs for Today

Ontario’s strong economy is helping create high-quality jobs and has reduced the province’s unemployment rate to below the national average for the first time since 2005.

Ontario’s unemployment rate is below the Canadian average
In January 2016
Ontario’s Unemployment Rate Canada’s Unemployment Rate
6.7% 7.2%
Ontario’s unemployment rate dropped 0.5 percentage points
from 2014 to 2015
In 2014
Ontario’s Unemployment Rate
In 2015
Ontario’s Unemployment Rate
7.3% 6.8%

Since the global recession, the majority of the net new jobs in Ontario are full time, in the private sector and in industries that pay above-average wages.

Jobs for Tomorrow

The Province is projected to create more jobs and lower its unemployment rate as Ontario continues to be among the leaders in provincial economic growth.

Ontario’s unemployment rate is projected to fall
every year from 2016 to 2019
2016
Unemployment Rate
2017
Unemployment Rate
2018
Unemployment Rate
2019
Unemployment Rate
6.6% 6.4% 6.3% 6.1%

*All numbers projected.

Ontario is projected to create more than 300,000 net new jobs
by the end of 2019
2016
Net New Jobs
2017
Net New Jobs
2018
Net New Jobs
2019
Net New Jobs
78,000 85,000 82,000 79,000

*All numbers projected.

Real GDP Growth for Today

Ontario’s real GDP growth is expected to outpace
the national average

In 2015
Ontario’s Real GDP Growth Canada’s Real GDP Growth
2.5% 1.2%

*All numbers projected.

Real GDP Growth for Tomorrow

Ontario’s real GDP is projected to grow on average by 2.2 per cent a
year from 2016 to 2019
2016
Real GDP Growth
2017
Real GDP Growth
2018
Real GDP Growth
2019
Real GDP Growth
2.2% 2.4% 2.2% 2.0%

*All numbers projected.

Path to Balance

The government’s plan to eliminate the deficit is working, on target and on schedule. The 2016 Budget advances the plan while continuing to invest in the economy, people and a healthy, clean and prosperous low-carbon future. The government is projecting a deficit of $5.7 billion in 2015–16 and is on track to beat its deficit target for the seventh year in a row. Looking forward, the government is now projecting a deficit of $4.3 billion in 2016–17 and a balanced budget in both 2017–18 and 2018–19.

As an indication of greater sustainability in the Province’s management of its debt, net debt-to-GDP is expected to peak at 39.6 per cent in 2015–16, remain level in 2016–17 and begin to decline in 2017–18.

Two Ways Ontario Is Eliminating the Deficit

1. Transforming Government and Managing Costs

Ontario is managing spending and improving the effectiveness, efficiency and sustainability of its services, while continuing to review programs, including public services and internal administration. This approach will help Ontario:

Limit the average program
spending growth to less than
2%
annually until 2018–19.
Balance the budget in
2017–18 and
2018–19.

2. Addressing the Underground Economy

Businesses contribute to the underground economy when they fail to report their income for tax purposes or avoid other regulatory obligations. Participating in the underground economy creates an unfair advantage for these businesses and puts the safety of consumers and workers at risk. By combating these actions, Ontario is protecting consumers and workers, making sure that businesses pay their fair share of taxes and helping ensure the sustainability of essential services, such as health care and education.

Since 2013–14, Ontario has generated
$930 million
through initiatives that ensure everyone pays
their fair share of taxes.

This is a
$330 million
increase over the amount reported in the 2015 Budget.

Chart Descriptions

Ontario’s Plan to Eliminate the Deficit

This bar chart shows projections for Ontario’s fiscal outlook in 2015–16, 2016–17, 2017–18 and 2018–19. The 2015–16 deficit is projected to be $5.7 billion, a $2.8 billion improvement compared to the $8.5 billion deficit forecasted in the 2015 Budget. In 2016–17, Ontario’s deficit is projected to be $4.3 billion, a $0.5 billion improvement compared to the $4.8 billion deficit forecasted in the 2015 Budget. Ontario is projected to balance its budget in both 2017–18 and 2018–19.

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