: Ontario Economic Accounts

First Quarter of 2018
(January, February, March)
Ontario Ministry of Finance

Table of Contents

ECONOMIC ACCOUNTS

RECENT ECONOMIC DEVELOPMENTS

Highlights

Ontario’s Economy Continues to Grow

  • Ontario’s real gross domestic product (GDP) increased 0.3% in the first quarter (January, February, March) of 2018, following a 0.6% increase in the fourth quarter of 2017.
  • First quarter growth was supported by consumer spending and gains in business investment in non-residential structures and machinery and equipment. Growth was moderated by weaker exports and lower residential construction, reflecting a slowdown in home resale activity.
  • Nominal GDP increased 0.7%, following a 1.4% gain in the fourth quarter of 2017. Compensation of employees rose by 1.0%, while the net operating surplus of corporations increased 1.3%.
  • Economic production, measured on an industry basis, increased 0.3%. Service sector output advanced by 0.2%, while output in goods-producing industries rose 0.6%.

Expenditure Details

Household Spending and Business Investment Boost Real GDP

Ontario’s real GDP rose by 0.3% in the first quarter of 2018, following a 0.6% gain in the previous quarter.

Ontario’s household consumption spending increased 0.5%, following a 0.4% gain in the fourth quarter. Consumer spending increased on durables (+2.2%) and services (+0.5%), while spending on semi-durables was unchanged and non-durables edged down 0.3%.

Business investment advanced 1.2%, after increasing 1.7% in the previous quarter. Investment in non-residential structures (+3.4%), machinery and equipment (+5.3%) and intellectual property products (+2.9%) increased. These gains were moderated by lower investment in residential construction (−1.8%), reflecting a slowdown in home resale activity.

Government spending increased by 1.3%, following a 0.9% rise in the fourth quarter.

Exports edged up 0.1%, driven by interprovincial exports (+0.5%), while international exports declined 0.2%. Total imports increased 1.4% in the quarter, after decreasing 0.3% in the fourth quarter.

Businesses accumulated $6.4 billion of inventories, following a $5.7 billion increase in the fourth quarter.

Final domestic demand, which is the sum of consumption, investment and government expenditures, advanced by 0.8% in the first quarter, following a similar gain in the fourth quarter.

Income Details

Nominal GDP Continues to Rise

Nominal GDP increased 0.7%, after advancing 1.4% in the fourth quarter.

Compensation of employees, which includes both wages and salaries, and supplementary labour income, increased 1.0%, after rising 1.7% in the previous quarter.

Business sector profits, measured by the net operating surplus of corporations, increased 1.3%, following no change in the fourth quarter.

Net mixed income, which is comprised of farm, non-farm and rental income, edged up 0.1%, following a 1.5% increase in the previous quarter.

Household disposable income increased 1.0%, after rising 1.4% in the previous quarter.

The household savings rate edged down to 2.9% in the first quarter.

Price Details

Economy-Wide Prices Up

Economy-wide prices, as measured by the implicit price index for GDP, increased 0.3% in the first quarter, following a 0.8% rise in the fourth quarter.

Prices for household consumption expenditures increased 0.6%, following a similar gain in the fourth quarter. Prices for motor vehicles and parts, clothing, food and beverages and gasoline increased, while prices for furniture, appliances and electricity declined.

Business investment prices were unchanged, with prices for residential construction (+0.1%) increasing and machinery and equipment (−0.2%) declining. Prices for non-residential construction and intellectual property products were unchanged.

Prices were higher for both exports (+0.4%) and imports (+0.3%). During this period, the Canadian dollar appreciated by 0.5% against the U.S. dollar.

Industry Details

Manufacturing and Financial Sector Lead Q1 Growth

Based on production by industry, Ontario real GDP expanded 0.3% in the first quarter, following a gain of 0.8% in the previous quarter. Both the goods (+0.6%) and service-producing (+0.2%) industries posted gains.

Within the goods-producing sector, construction output advanced 2.1%, led by non-residential building and engineering (+2.6%). Residential construction output increased 1.0%, supported by new construction and renovation activity.

Manufacturing production increased 1.2% in the first quarter, driven by transportation equipment (+3.1%), with the auto industry expanding 1.8%. Machinery (+6.1%) and primary and fabricated metal manufacturing (+2.6%) also contributed to the increase.

Growth in service-producing industries was led by finance and insurance (+1.5%) and professional and administrative services (+1.5%), but partially offset by a decline in real estate, rental and leasing (−1.0%).

Jurisdictional Comparisons

Ontario Growth in Context

Canadian real GDP advanced 0.3%, after rising 0.4% in the preceding quarter, led by household consumption and business investment. Quebec’s real GDP rose 0.4% in the first quarter, following a 0.5% gain.

In the U.S., real GDP advanced 0.5%, following a 0.7% gain in the fourth quarter. Business investment and household consumption contributed to growth in the quarter. Net trade also supported the gain as exports increased 0.9%, while imports rose 0.8%.

Employment

Labour Market Overview

Ontario’s employment advanced by 33,900 in the second quarter of 2018, following a decline of 20,500 in the first quarter.

Ontario’s unemployment rate was 5.9% in June 2018, below the national average for the 38th consecutive month.

As of June 2018, employment was 8.9% (+594,300 jobs) above the pre-recession peak and 13.6% (+866,800 jobs) above the recessionary low.

Since the recessionary low, the majority of jobs created were full-time positions (+853,400), while part-time employment (+13,300) also increased. Most of these net new jobs were in the private sector (+607,300) and in industries paying above–average wages (+589,700).

Trade

Manufacturing Sales and Retail and Wholesale Trade Advance

Retail sales advanced 3.1% over the first four months of 2018, compared to the same period in 2017. Sales in April declined 2.3% from March, partially due to unseasonably cold temperatures.

Wholesale trade increased 5.3% over the first four months of 2018, compared to the same period in 2017.  Wholesale trade in April declined 0.7% (m/m) on lower sales of motor vehicles and parts and building materials and supplies.

Manufacturing sales rose 1.9% over the first four months of 2018, compared to the same period in 2017. Sales in April advanced 0.2% (m/m), led by gains in primary metals as well as motor vehicle assembly.

Ontario’s international merchandise exports declined 3.3% over the first five months of 2018, compared to the same period in 2017. Exports to Ontario’s top market, the United States, declined 5.0% over this period.

Housing

Housing Market Overview

Sales of existing homes have declined from the elevated levels observed in early 2017. In May, home resales declined 20.8% compared to a year earlier. Overall, for the first five months of 2018, home resales were 26.2% lower than a year ago, driven by declines in the Greater Toronto Area (GTA) and its surrounding areas.

Ontario average home resale prices have also moderated. On a year-to-date basis, the average Ontario home resale price was 9.2% lower in the first five months of 2018, compared to a year earlier.

Housing starts increased 6.3% over the first six months of 2018, compared to a year earlier, on the strength of multiple-family starts (+18.8%), while single-detached starts (−16.3%) declined.

Global Economic Developments

Global Economy Slows in Q1

Growth in most major economies slowed in the first quarter of 2018 compared to the pace of growth in the second half of 2017. Real GDP growth in the euro area slowed to 0.4% in the first quarter of 2018, while Japanese real GDP declined 0.2%. International trade volumes slowed over this period, impacted by rising oil prices and higher interest rates.

U.S. real GDP rose 0.5% in the first quarter of 2018, slowing from a 0.7% gain in the fourth quarter.  Non-residential investment was a key driver of growth, rising 2.5% in the first quarter. Strong U.S. business capital outlays were bolstered by recovering investment in oil and gas and improving demand. On the household side, personal consumption increased 0.2% in the first quarter, while residential investment declined 0.3%.  Net trade was less of a drag on real GDP growth compared to the fourth quarter, with exports (+0.9%) rising slightly faster than imports (+0.8%).

U.S. payroll employment continues to post solid gains, adding on average 211,000 net new jobs monthly so far in the second quarter compared to an average of 218,000 in the first quarter of 2018. After dipping below 4.0% in April and May, the unemployment rate moved up to 4.0% in June.

Canadian Dollar Declines Amid Rising Trade Tensions

Following three increases between July 2017 and January 2018, the Bank of Canada raised its policy interest rate for a fourth time in July to 1.50%. Over the same period, the Federal Reserve raised the target range for the fed funds rate to between 1.75% and 2.00%. Longer-term government bond yields have been little-changed over the past three months as geopolitical risks offset the upward pressure of a strong U.S. economy and rising U.S. government borrowing.

Oil prices remained elevated over the past three months, supported by strong international demand and concerns about supply.

Since early April, the Canadian dollar has eased from around 78 cents U.S. to slightly above 75 cents U.S at the end of June.

Stock markets posted solid gains in the second quarter of 2018, despite rising international trade tensions and geopolitical uncertainty. The S&P/TSX in particular has benefited from the impact of higher oil prices as well as the lower Canadian dollar. Between early April and the end of June, the S&P 500 has gained 3.5%, the S&P/TSX rose by 6.9% and the Nikkei 225 was up by 4.4%. The Euro Stoxx was up 0.4% over the same period.

In Focus

A Closer Look at Ontario’s Natural Resources Economy

Natural resources sectors continue to be important part of Ontario’s economy. Statistics Canada’s recently released Provincial and Territorial Natural Resource Indicators provide a comprehensive view of economic activity of Ontario’s resource sectors, which include: energy; forests; minerals and mining; and, hunting, fishing and water.

Goods and services produced by Ontario’s natural resources1 economy are supporting economic growth in the province. Ontario’s resource sector real GDP increased 1.5% to $33.0 billion in 2016 and was 16.8% higher than in 2009.

Natural resources accounted for a 4.9% share of Ontario’s total GDP in 2016. Energy (47.5%) accounted for the largest share of resource sector nominal GDP in 2016, followed by minerals and mining (36.9%). The hunting, fishing and water (9.8%) and forest (5.9%) sectors represented smaller shares.

Ontario natural resources employment was 134,096 in 2016, down 0.7% from 2015 but up 2.4% from 2009. Minerals and mining accounted for 52.0% of natural resource workers in 2016. Energy (30.6%) and forestry (12.6%) also sustained large workforces.

Ontario natural resources exports rose 3.3% to $45.0B in 2016 and are 53.3% higher than in 2009. Minerals and mining was the largest contributor, accounting for 68.3% of exports, followed by energy (25.0%) and forestry (9.2%). Imports declined 1.2% to $64.7B in 2016. Minerals and mining (50.9%) and energy (42.4%) products accounted for the majority of natural resource imports.

Downstream forest and minerals industries, which include secondary and tertiary processing, are also significant sectors and magnify the overall impact of the resources sector. These industries had real output of $14.0B in 2016 and employed 149,302 workers. Output increased 30.0% between 2009 and 2016. Products of downstream industries contributed $30.3B to Ontario’s 2016 international and interprovincial exports and $28.6B to imports.

[1] Statistics Canada defines natural resources activities “as those which result in goods and services originating from naturally-occurring assets used in economic activity, as well as their initial processing (primary manufacturing).” This definition excludes activities like agriculture which involve intensive cultivation.

Appendix

Structure of the Ontario Economy

How GDP is Measured

The Ontario Economic Accounts provide measurements of GDP using three different methodologies, by expenditure, income and industry.

The GDP by expenditure approach defines GDP as the aggregate of all expenditures on final consumption, gross capital formation and net trade by consumers, governments and businesses that occur within Ontario’s economy over a given time period. This measurement of GDP can also be defined as the sum of consumer spending, gross investment, government spending and net trade.

The GDP by income approach equates GDP to the total income earned through contributions to production within Ontario’s economy by labour and capital over a given time period. That is, GDP is the sum of all wages and salaries paid to employees, the gross operating surplus of businesses, gross mixed income and indirect taxes less subsidies.

The GDP by industry approach measures GDP by calculating the total output of the goods and services producing industries within Ontario’s economy and subtracting the cost of intermediate inputs used in final production. This approach can also be referred to as the value-added approach as it quantifies the additional value generated by industries through the production of final products within the economy.

For a full list of definitions used in the Ontario Economic Accounts, please see Statistics Canada’s System of Macroeconomic Accounts Glossary at http://www.statcan.gc.ca/eng/nea/gloss/gloss_a.

List of Data Tables

Income and Expenditure Data

Quarterly Data, 2015:Q1–2018:Q1

Table 1: Ontario Gross Domestic Product (Income-Based)
Table 2: Ontario Gross Domestic Product (Expenditure-Based)
Table 3: Ontario Gross Domestic Product at Chained 2007 Prices
Table 4: Sources and Disposition of Ontario Household Income
Table 5: Ontario Trade
Table 6: Ontario Trade (Chained 2007 Prices)
Table 7: Ontario Deflators

Annual Data, 2014-2017

Table 8: Ontario Gross Domestic Product (Income-Based)
Table 9: Ontario Gross Domestic Product (Expenditure-Based)
Table 10: Ontario Gross Domestic Product at Chained 2007 Prices
Table 11: Sources and Disposition of Ontario Household Income
Table 12: Ontario Trade
Table 13: Ontario Trade (Chained 2007 Prices)
Table 14: Ontario Deflators

Ontario Production by Industry at 2007 Prices

Table 15: Quarterly Data, 2015:Q1-2018:Q1
Table 16: Annual Data, 2014-2017

Historical tables, both annual and quarterly available from 1981.
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Graphic Descriptions

Highlights: Ontario GDP, First Quarter 2018

The chart indicates the per cent change in real and nominal GDP in the first quarter of 2018. Real GDP increased 0.3% and nominal GDP increased 0.7% in the quarter.

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Expenditure Details: Real GDP Growth

The bar chart illustrates Ontario’s quarterly per cent real GDP growth from the first quarter of 2014 to the first quarter of 2018. Ontario has experienced real GDP growth over the entire period. Real GDP rose 0.3% in the first quarter of 2018, following a 0.6% increase in the fourth quarter of 2017. The first quarter of 2017 recorded the strongest gain over the period, at 1.2%.

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Expenditure Details: Real GDP Change by Expenditure Component

The horizontal bar chart depicts the per cent change in Ontario’s real GDP and its components for the first quarter of 2018. Real GDP rose 0.3% in the quarter, with increases in household consumption (+0.5%), business investment (+1.2%), government spending (+1.3%), exports (+0.1%) and imports (+1.4%).

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Expenditure Details: Real Export and Import Growth

The bar chart shows the quarterly per cent change in real exports and imports from the first quarter of 2015 to the first quarter of 2018. Exports increased 0.1% in the first quarter of 2018, while imports rose 1.4%.

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Income Details: Nominal GDP Growth

The bar chart illustrates Ontario’s quarterly per cent nominal GDP growth from the first quarter of 2014 to the first quarter of 2018. Ontario has experienced nominal GDP growth over the entire period. Nominal GDP rose 0.7% in the first quarter of 2018, following a 1.4% increase in the fourth quarter of 2017. The first quarter of 2017 recorded the strongest gain over the period, at 2.0%.

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Income Details: Nominal GDP Change by Income Component

The horizontal bar chart depicts the per cent change in nominal GDP and its components for the first quarter of 2018. Nominal GDP rose 0.7% in the first quarter, with increases in compensation of employees (+1.0%), net operating surplus (+1.3%), net mixed income (+0.1%) and indirect taxes less subsidies (+0.6%).

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Income Details: Compensation of Employees Growth

The bar chart shows Ontario’s quarterly growth of employee compensation in per cent from the first quarter of 2014 to the first quarter of 2018. Compensation of employees rose 1.0% in the first quarter of 2018, following a 1.7% increase in the fourth quarter of 2017. The first quarter of 2015 and the fourth quarter of 2017 recorded the strongest gains over the period (+1.7%).

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Price Details: Economy-Wide Price Growth

The bar chart illustrates Ontario’s quarterly growth of economy-wide prices in per cent from the first quarter of 2014 to the first quarter of 2018. Economy-wide prices increased 0.3% in the first quarter of 2018, following a 0.8% increase in the fourth quarter of 2017. Since the first quarter of 2014, the strongest growth in prices was recorded in the first quarter of 2014 (+1.1%), while the largest decline was posted in the fourth quarter of 2014 (−0.3%).

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Price Details: Price Change by Expenditure Component

The horizontal bar chart shows the per cent change in prices by expenditure component for the first quarter of 2018. The overall GDP deflator increased 0.3% in the first quarter, with prices increasing for household consumption (+0.6%), government spending (+0.3%), exports (+0.4%) and imports (+0.3%).  Business investment prices were unchanged in the quarter.

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Price Details: Export and Import Price Growth

The bar chart illustrates Ontario’s quarterly growth of export and import prices in per cent from the first quarter of 2015 to the first quarter of 2018. In the first quarter of 2018, prices were higher for both imports (+0.3%) and exports (+0.4%). Since 2015, the largest gain in import prices (+2.1%) was in the second quarter of 2017. The largest gain in export prices (+1.8%) was in the third quarter of 2015. The largest fall in import (−3.5%) and export (−2.9%) prices was in the third quarter of 2017.

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Industry Details: Real GDP Growth by Industry

The bar chart depicts Ontario’s quarterly growth of real GDP by industry in per cent from the first quarter of 2014 to the first quarter of 2018. Ontario real GDP advanced 0.3% in the first quarter of 2018, following a 0.8% gain in the fourth quarter of 2017. Real GDP by industry has grown over the entire period, with the strongest gain of 1.2% recorded in the first quarter of 2017.

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Industry Details: Real GDP Change by Industry

The horizontal bar chart illustrates the per cent change in real GDP by industry category for the first quarter of 2018. The output of all industries grew 0.3% in the quarter. Output rose 0.6% in goods-producing industries, including industry changes as follows: construction (+2.1%); manufacturing (+1.2%); utilities (−1.0%); and, primary industries (−2.4%). Output in the service industries rose 0.2%, including industry changes as follows: finance and insurance (+1.5%); professional and administrative services (+1.5%); wholesale trade (+0.5%); health, education and public administration (+0.4%); retail trade (−0.5%); other services (−0.6%); and, real estate, rental and leasing (−1.0%).

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Industry Details: Real GDP Change by Manufacturing Industry

The horizontal bar chart shows the per cent change in real GDP by manufacturing industry for the first quarter of 2018. In total, output by manufacturing industries increased 1.2% in the quarter. The change in output of each manufacturing industry is as follows: machinery (+6.1%); transportation equipment (+3.1%); primary and fabricated metal (+2.6%); textile, clothing and leather (+2.3%); other manufacturing (+2.1%); electrical and electronic (+1.4%); chemical and petroleum (+1.1%); food, beverage and tobacco (+0.3%); wood and furniture (−0.7%); paper and printing (−4.1%); and, plastic and rubber (−4.9%).

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Jurisdictional Comparisons: Canadian Real GDP Growth

The bar chart illustrates Canada’s quarterly per cent real GDP growth from the first quarter of 2014 to the first quarter of 2018. Canadian real GDP grew 0.3% in the first quarter, following a 0.4% gain in the fourth quarter of 2017. The largest gain over the period was 1.2% in the second quarter of 2014, and the largest decline was 0.3% in the second quarter of 2016.

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Juristictional Comparisons: U.S. Real GDP Growth

The bar chart illustrates the U.S.’s quarterly per cent real GDP growth from the first quarter of 2014 to the first quarter of 2018. U.S. real GDP grew 0.5% in the first quarter, following a 0.7% gain in the fourth quarter of 2017. The U.S. has experienced real GDP growth over the entire period, with the largest gain over the period in the third quarter of 2014 (+1.3%).

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Employment: Ontario’s Labour Force

The chart indicates the change in Ontario’s employment in the second quarter of 2018 and the level of the unemployment rate in June 2018. Ontario’s employment rose by 33,900 net new jobs in the second quarter of 2018. The unemployment rate was 5.9% in June 2018.

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Employment: Ontario’s Labour Market

The combination line and area chart shows Ontario’s unemployment rate (line chart) and employment level (area chart). Employment has increased steadily from a low of 6.38 million in June 2009 to 7.24 million in June 2018. The unemployment rate peaked in June 2009 at 9.6% and has since steadily trended downwards, reaching 5.9% in June 2018.

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Employment: Employment Since the Recession

The bar chart shows different characteristics of Ontario employment gains since June 2009. Total employment has increased by 867,000 since June 2009, with full-time employment up by 853,000, while part-time employment rose by 13,000. Private-sector employment increased by 607,000, while public-sector employment rose by 143,000 and self-employment was up by 117,000. Employment in above-average wage industries rose by 590,000 compared to a 277,000 employment increase in below-average wage industries.

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Trade: Retail Sales

The line chart shows Ontario’s retail sales in billions of dollars from January 2014 to April 2018. Ontario’s retail sales have trended upwards since January 2014, but have moderated since reaching a peak of $18.6 billion in October 2017. Ontario’s retail sales advanced 3.1% over the first four months of 2018.

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Trade: Wholesale Trade

The line chart shows Ontario’s wholesale trade in billions of dollars from January 2014 to April 2018. Ontario’s wholesale trade has trended upwards since January 2014. Ontario’s wholesale trade rose 5.3% over the first four months of 2018.

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Trade: Manufacturing Sales

The line chart shows Ontario’s manufacturing sales in billions of dollars from January 2014 to April 2018. Ontario’s manufacturing sales trended upwards in 2014 and 2015, with most of the growth occurring at the end of 2015. Following the strong start to 2016, manufacturing sales declined before resuming an upward trend into 2017, until declining mid-2017, before once again increasing in the latter part of 2017. Ontario’s manufacturing sales rose 1.9% over the first four months of 2018.

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Housing: Home Resales

The line chart shows Ontario’s home resales in units from January 2014 to May 2018. Ontario’s home resales grew from about 15,800 in January 2014 to over 21,700 in October 2016. After a slight subsequent decline, home resales increased to almost 21,500 in March 2017. Home resales declined to about 15,800 in July 2017, and recovered to about 19,500 in December 2017. In May 2018, home resales were about 14,800 units. Ontario’s home resales declined 26.2% over the first five months of 2018.

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Housing: Home Resale Prices

The line chart shows Ontario’s average home resale prices in dollars from January 2014 to May 2018. Ontario’s home resale price increased from $421,000 in January 2014 to a peak of $650,000 in March 2017. Average resales prices declined to $536,000 in June 2017 before increasing to almost $579,000 in December 2017. Subsequently prices trended down to $548,000 in May 2018. Ontario home resale prices have declined 9.2% over the first five months of 2018.

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Housing: Housing Starts

The line chart shows Ontario’s housing starts in thousands of units (seasonally adjusted at annual rates) from January 2014 to June 2018. Ontario’s housing starts reached a peak of almost 106,000 units in February 2018, but declined to 56,000 units in May 2018, before rebounding to over 104,000 in June 2018. The low over the period was just under 42,000 in February 2015. Ontario’s housing starts increased 6.3% over the first six months of 2018.

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Global Economic Developments: Real GDP Growth

This chart shows quarterly percentage changes in real GDP on a year-over-year basis for the U.S. as a bar graph, and for the Euro area and Japan as line graphs, from the first quarter of 2014 to the first quarter of 2018. In the first quarter of 2018, U.S. real GDP growth was 2.8%, Euro area growth was 2.5% and Japanese growth was 1.1%.

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Global Economic Developments: U.S. Real GDP Growth and Business Investment

The chart shows the quarterly per cent change in U.S. real GDP as bars and the quarterly change in U.S. non-residential investment as a line, from the first quarter of 2014 to the first quarter of 2018. U.S. real GDP growth was 0.5% in the first quarter of 2018, and has been positive since the second quarter of 2014. U.S. non-residential investment growth was 2.5% in the first quarter of 2018, and has been trending up since reaching a low −1.3% in the fourth quarter of 2015.

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Global Economic Developments: U.S. Labour Market

This bar and line chart shows the U.S. unemployment rate (line chart) and employment (bar chart) from January 2014 to June 2018. Over this period, employment has increased in every month and the unemployment rate, after showing an improving trend since January 2014, has increased slightly to 4.0% in June, from a low of 3.8% in May.

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Global Economic Developments: Three-Month Treasury Bill Rate

The line chart shows the daily rates of the three-month Treasury bill yield for the U.S. government and the Government of Canada from January 2014 to June 2018. U.S. yields have been rising since early 2017, and reached over 1.9% by the end of June 2018. Canadian yields have been trending upwards since the middle of 2017 and reached over 1.2% by the end of June 2018.

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Global Economic Developments: Oil Prices and the Canadian Dollar

The line chart shows the daily oil prices ($US per barrel) and Canadian dollar (cents U.S.) between January 2014 and June 2018. Since its recent peak of over 81 cents U.S. in early February 2018, the dollar has gradually fallen to slightly over 75 cents U.S. by late June.  Since oil prices reached over $72 U.S. per barrel in May, they trended slightly downward, but then recovered to over $70 U.S. per barrel by the end of June.

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Global Economic Developments: Stock Indexes

The line chart shows the daily value of the S&P 500, Nikkei, TSX and Euro Stoxx 50 stock indexes from January 2014 to June 2018. The indexes represented in the chart follow a similar upward trend since 2016. Between early April and the end of June 2018, the S&P 500 has gained 3.5%, the S&P/TSX rose by 6.9% and the Nikkei 225 was up by 4.4%. The Euro Stoxx was up 0.4% over the same period.

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In Focus: Ontario Natural Resources Real GDP

The stacked area chart shows change in the level of Ontario natural resources real GDP in billions of 2007 dollars from 2009 to 2016, as well as the contributions of four components: energy; minerals and mining; hunting, fishing and water; and, forests. Ontario natural resources real GDP increased from $28.3 billion in 2009 to $33.0 billion in 2016. The real GDP of the four subsectors in 2016 was as follows: minerals and mining, $14.7 billion; energy, $13.6 billion; hunting, fishing and water, $2.7 billion; and, forests, $2.2 billion.

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In Focus: Ontario Natural Resources Employment

The stacked area chart shows change in the level of Ontario natural resources employment in thousands of persons from 2009 to 2016, as well as the contributions of four components: minerals and mining; energy; forests; and, hunting, fishing and water. Ontario natural resources employment was 131 thousand in 2009, reached a high of 141 thousands in 2011, and subsequently declined to 134 thousand by 2016. The employment shares of the four sub-components in 2016 was as follows: minerals and mining, (52.0%); energy, (30.6%); forests, (12.6%); and, hunting, fishing and water, (5.0%).

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In Focus: Ontario Natural Resources Trade

The chart has bar charts showing the levels of exports and imports from Ontario’s natural resources sector and a line chart showing the level of the trade balance in the natural resources sector in billions of dollars, for the period 2009 to 2016. Imports have generally exceeded exports over the period resulting in a negative trade balance, which has ranged between a low of −$28 billion in 2014 and a high of −$20 billion in 2016. Exports were $29 billion in 2009, reached a high of $47 billion in 2011, and were $45 billion in 2016. Imports were $51 billion in 2009, reached a high of $75 billion in 2014, and were $65 billion in 2016.

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Appendix: Per Cent Share of Nominal GDP, 2017

The pie chart illustrates Ontario’s shares of nominal GDP by industry in 2017. The good-producing industries accounted for 22.1% of nominal GDP, including manufacturing (11.7%), construction (6.8%), utilities (1.9%) and primary (1.8%). The service producing industries accounted for 77.9% of nominal GDP, including other services (15.6%), real estate and rental and leasing (13.0%), health and education (12.7%), wholesale and retail trade (12.0%), finance and insurance (9.6%), public administration (7.2%), transportation and warehousing (4.1%) and information and culture (3.7%).

Source: Statistics Canada.

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Appendix: GDP measurement methods

  • Expenditure Approach
    • Sum of expenditures of all sectors of the economy
    • Consumer Spending + Investment + Government Spending + Exports − Imports
  • Income Approach
    • Sum of all incomes
    • Wage and Salaries + Profits + Mixed Incomes + Indirect taxes − Subsidies
  • Production Approach (GDP by Industry)
    • Sum of value added in all industry sectors
    • Output of Goods Producing Industries + Output of Services Producing Industries − Intermediate Inputs

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