: Ontario Economic Accounts

Third Quarter of 2018
(July, August, September)
Ontario Ministry of Finance

Table of Contents

ECONOMIC ACCOUNTS

RECENT ECONOMIC DEVELOPMENTS

Note to readers: In addition to the usual revisions to the quarterly economic accounts data to align with Statistics Canada’s annual Provincial Economic Accounts, this release includes an updated base year (from 2007 to 2012) and the incorporation of the 2015 Supply and Use tables for the income and expenditure accounts.

Highlights

Ontario's Economy Grows in Q3

  • Ontario’s real gross domestic product (GDP) increased 0.6% in the third quarter (July, August, September) of 2018.
  • Third quarter growth was led by an increase in consumer spending. Net trade also helped boost GDP in the quarter.
  • Nominal GDP increased 1.3% as compensation of employees rose by 0.8% and the net operating surplus of corporations increased 5.3%.
  • Economic production, measured on an industry basis, increased 0.6%. Service sector output advanced by 0.7%, while output in goods-producing industries was unchanged from the previous quarter.

Expenditure Details

Household Spending Boosts GDP

Ontario’s real GDP rose by 0.6% in the third quarter of 2018, in line with average growth since mid-2017.

Household consumption spending increased 0.6%, after rising 0.5% in the second quarter. Consumer spending on services increased 0.5%. Non-durable spending rose 0.6%, with increased spending on alcohol, personal goods and food. Spending on semi-durable goods (+1.0%), led by clothing, and durable goods (+0.4%), including motor vehicles and parts, also rose in the quarter.

Total investment spending declined 1.1%. Investment in residential construction (−1.9%), machinery and equipment (−1.6%) and intellectual property products (−0.5%) declined. Higher investment in non-residential structures (+1.0%) partially offset the overall decline.

Spending at all three levels of Government increased by 0.5%, following a 0.3% rise in the second quarter.

Exports edged up 0.1%, the fourth consecutive quarterly rise. An increase in interprovincial exports (+0.8%) was partially offset by a decline in international exports (−0.4%). Imports declined 0.8%, following a 0.2% increase in the second quarter.

Businesses accumulated $2.9 billion worth of inventories, following a $5.2 billion increase in the second quarter.

Final domestic demand, which is the sum of consumption, investment and government expenditures, advanced by 0.3% in the third quarter, following a 0.4% gain in the second quarter.

Income Details

Nominal GDP Rises

Ontario’s nominal GDP increased 1.3%, after advancing 1.2% in the second quarter.

Compensation of employees, which includes both wages and salaries and supplementary labour income, increased 0.8%, after rising 0.7% in the previous quarter.

Business sector profits, measured by the net operating surplus of corporations, increased 5.3%, the third consecutive quarterly gain.

Net mixed income, which is comprised of farm, non-farm and rental income, increased 1.3%, after a gain of 1.0% in the second quarter.

Household disposable income increased 1.0%, following a 1.2% gain in the previous quarter.

The household savings rate decreased to 0.1% in the third quarter.

Price Details

Economy-Wide Price Impacts

Economy-wide prices, as measured by the implicit price index for GDP, increased 0.6% in the third quarter, following a 0.3% gain in the second quarter.

Prices for household consumption expenditures increased 0.5%, following a 0.4% gain in the previous quarter.

Business investment prices increased 1.1%, with increases in residential construction (+1.4%), machinery and equipment (+1.6%), non-residential construction (+0.4%) and intellectual property products (+0.1%).

Prices were higher for both exports (+0.8%) and imports (+1.0%). During this period, the Canadian dollar depreciated by 1.5% against the U.S. dollar.

Industry Details

Service Sector Leads Growth

Based on output by industry, Ontario real GDP advanced 0.6% in the third quarter, following a gain of 0.8% in the previous quarter. Growth was led by service-producing industries (+0.7%), while output in goods-producing industries was unchanged in the quarter.

Within the goods sector, manufacturing output increased 1.1%, led by chemical and petroleum (+5.1%), food and beverage (+2.6%) and plastic and rubber (+2.8%) products. Partially offsetting the overall gain was lower output in transportation equipment (−0.4%), which was affected by atypical seasonal shutdowns in motor vehicle assembly.

Construction output declined 1.7% in the third quarter, led by residential construction (−4.9%). Increased non-residential buildings and engineering (+0.4%) output partially mitigated the decline.

Primary industry output decreased by 2.0%, as output in both mining, quarrying and oil & gas (−3.5%) and agriculture, forestry, fishing and hunting (−0.7%) declined.

Utilities output increased 2.2%, as electric power output rose 2.1%.

Output in service-producing industries increased 0.7% in the third quarter, with the largest contribution from real estate, rental and leasing (+0.9%). Educational services (+1.6%), transportation and warehousing (+1.9%), health care and social assistance (+1.0%) and professional and administrative services (+0.7%) also posted notable gains.

Jurisdictional Comparisons

Ontario Growth in Context

Canadian real GDP increased 0.5% in the third quarter, following a 0.7% gain in the second quarter, driven by stronger household consumption and lower imports.

Quebec’s real GDP rose 0.6% in the third quarter, following a 0.3% increase in the second quarter, led by stronger exports.

In the U.S., real GDP advanced 0.8% in the third quarter, after rising 1.0% in the second quarter. Household consumption supported growth in the quarter.

Employment

Labour Market Overview

Ontario’s employment increased by 114,400 in 2018, following gains of 128,400 in 2017 and 76,400 in 2016.

The 2018 gain was concentrated in full-time employment (+130,300), while part-time positions declined by 15,900. Private sector (+50,000), public sector (+47,600) and self-employment (+16,800) all rose in the year.

As of December 2018, Ontario’s unemployment rate was 5.4%. On an annual basis, the unemployment rate declined to 5.6% in 2018, the lowest since 1989.


Note: More information on Ontario labour market performance can be found in the Quarterly Ontario Employment Report at: https://www.ontario.ca/page/ontario-employment-report-july-september-2018

Sales and Trade

Retail and Wholesale Trade and Manufacturing Sales Advance

Retail sales advanced 4.3% over the first ten months of 2018, compared to the same period in 2017, led by higher sales at motor vehicles and parts dealers and gasoline stations. Sales in October increased 1.1% (m/m), the sixth consecutive monthly increase.

Wholesale trade increased 3.2% over the first ten months of 2018, compared to the same period in 2017.  Wholesale trade in October increased 2.3% (m/m) on higher sales of machinery and equipment and personal and household goods.

Manufacturing sales rose 3.9% over the first ten months of 2018, compared to the same period in 2017. Sales in October advanced 0.7% (m/m), led by gains in transportation equipment.

Ontario’s international merchandise exports increased 1.8% over the first eleven months of 2018, compared to the same period in 2017. Exports to Ontario’s top market, the United States, declined 0.3% over this period, while exports to other countries including China, Japan, Mexico and Germany increased.

Housing

Housing Market Overview

Sales of existing homes have stabilized in recent months, but remain below levels of previous years. Over the first eleven months of 2018, home resales were 13.5% lower than the same period in 2017, driven by declines in the Greater Toronto Area (GTA) and its surrounding areas.

Ontario average home resale prices have moderated. On a year-to-date basis, the average Ontario home resale price was 1.7% lower over the first eleven months of 2018, compared to a year earlier.

Housing starts declined 0.5% in 2018. Single-detached starts declined 18.2%, while multiple-unit starts increased 11.4%.

Global Economic Developments

Global Growth Mixed

Global economic performance generally slowed in the third quarter of 2018. Real GDP in the euro zone rose by 0.2% in the third quarter, slowing from 0.4% in the second quarter. Japanese real GDP declined by 0.6% in the third quarter, the second quarterly decline in 2018. Real GDP growth picked up in the United Kingdom, rising 0.6% following growth of 0.4% in the second quarter.

U.S. real GDP growth slowed modestly to 0.8% in the third quarter, from 1.0% in the second quarter. Consumer spending rose by 0.9%, matching the pace set in the second quarter. Net trade was a significant drag on GDP growth as imports rose 2.2% and exports declined 1.2%, partly reflecting the impact of new Chinese tariffs. Business investment rose 0.6% in the third quarter, slowing from average growth of 2.0% over the previous three quarters.

The U.S. labour market continued to benefit from a strong economy, adding an average of 254,000 net new jobs in the fourth quarter compared to an average of 190,000 in the third quarter of 2018. The unemployment rate rose slightly to 3.9% in December.

Financial Markets Volatility

The Bank of Canada left its policy interest rate unchanged in January 2019 and December 2018 at 1.75%, following a 25 basis point increase in October. Responding to strong labour markets and solid economic growth, the U.S. Federal Reserve raised the target range for the fed funds rates to between 2.25% to 2.50% in December. However, concerns global growth may be slowing alongside equity market weakness have contributed to lower longer-term interest rates since mid-September.

Oil prices were weak throughout the fourth quarter, declining markedly from $76 U.S. per barrel (West Texas Intermediate) in early October to below $46 U.S. per barrel by late-December. Western Canadian Select declined much further than global oil prices towards the end of November before improving in December.

The Canadian dollar declined from around 78 cents U.S. at the beginning of October to below 74 cents U.S. by the end of December due to lower oil prices and expectations for slower interest rate increases by the Bank of Canada.

Higher near-term interest rates and concerns about the slowing of economic growth weighed on stock markets in the fourth quarter of 2018. Between early September and the middle of December, the S&P 500 declined over 13% and the S&P/TSX Composite was down 11%. Overseas markets were also negative as the Euro Stoxx 50 and the Nikkei declined 8% and 10%, respectively, over the same period.

In Focus

A Closer Look at Residential Investment

Residential investment is an important component of Ontario’s economy, accounting for about 8% of GDP in 2018. Following a period of very strong, but unsustainable growth tied to the resale housing market that peaked in early 2017, residential investment has softened and stabilized in recent quarters.

Residential investment is made up of three components: new home construction, renovations to existing homes and ownership transfer costs.

New home construction of single- and multi-family homes accounts for over 40% of the residential construction. Following a period of strong growth dating back to 2014, new residential construction began to contract in 2017. Since its peak in the first quarter of 2017, investment in new residential construction has declined by 6.7%.

The renovations component includes major renovations such as structural extensions or replacing a roof, and excludes minor repairs and upkeep such as painting. Renovations account for over 30% of residential investment. While new home construction has slowed, renovation investment has largely continued to trend upwards.

Ownership transfer costs include real estate commissions, land transfer taxes and legal fees associated with buying or selling homes, and therefore closely reflect the trends of the resale housing market. Transfer costs account for about a quarter of residential investment. Transfer costs experienced a period of strong growth leading up to 2017, which was followed by a sharp decline. In the second quarter of 2018, transfer costs declined to levels not seen since the beginning of 2009, declining 37.5% from the peak recorded in the first quarter of 2017.

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:Q3

Table 1: Ontario Gross Domestic Product (Income-Based)
Table 2: Ontario Gross Domestic Product (Expenditure-Based)
Table 3: Ontario Gross Domestic Product at Chained 2012 Prices
Table 4: Sources and Disposition of Ontario Household Income
Table 5: Ontario Trade
Table 6: Ontario Trade (Chained 2012 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 2012 Prices
Table 11: Sources and Disposition of Ontario Household Income
Table 12: Ontario Trade
Table 13: Ontario Trade (Chained 2012 Prices)
Table 14: Ontario Deflators

Ontario Production by Industry at 2012 Prices

Table 15: Quarterly Data, 2015:Q1-2018:Q3
Table 16: Annual Data, 2014-2017

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

Highlights: Ontario GDP, Third Quarter 2018

The chart indicates the per cent change in real and nominal GDP in the third quarter of 2018. Real GDP increased 0.6% and nominal GDP increased 1.3% 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 third quarter of 2018. Ontario has experienced real GDP growth over the entire period. Real GDP rose 0.6% in the third quarter of 2018, following a 0.9% increase in the second quarter of 2018. 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 third quarter of 2018. Real GDP rose 0.6% in the quarter, with increases in household consumption (+0.6%), government (+0.5%) and exports (+0.1%). Investment (−1.1%) and imports (−0.8%) declined.

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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 third quarter of 2018. Exports increased 0.1% in the third quarter of 2018, while imports declined 0.8%.

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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 third quarter of 2018. Ontario has experienced nominal GDP growth over the entire period. Nominal GDP rose 1.3% in the third quarter of 2018, following a 1.2% increase in the second quarter of 2018. The third quarter of 2014 recorded the strongest gain over the period, at 1.9%.

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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 third quarter of 2018. Nominal GDP rose 1.3% in the third quarter, with increases in compensation of employees (+0.8%), net operating surplus (+5.3%), net mixed income (+1.3%) and indirect taxes less subsidies (+1.2%).

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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 third quarter of 2018. Compensation of employees rose 0.8% in the third quarter of 2018, following a 0.7% increase in the second quarter of 2018. The fourth quarter of 2017 recorded the strongest gain over the period, at 2.3%.

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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 third quarter of 2018. Economy-wide prices increased 0.6% in the third quarter of 2018, following a 0.3% increase in the second quarter. 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 third quarter of 2017 (−0.4%).

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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 third quarter of 2018. Prices increased for household consumption (+0.5%), business investment (+1.1%), government (+0.8%), exports (+0.8%) and imports (+1.0%).

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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 third quarter of 2018. In the third quarter of 2018, prices were higher for both imports (+1.0%) and exports (+0.8%). Since 2015, the largest gain in import prices (+2.7%) and export prices (+2.8%) was in the third quarter of 2015. The largest fall in import (−3.2%) and export (−3.0%) 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 third quarter of 2018. Ontario real GDP advanced 0.6% in the third quarter of 2018, following a 0.8% gain in the second quarter. Real GDP by industry has grown over the entire period, with the strongest gain of 1.3% 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 third quarter of 2018. The output of all industries grew 0.6% in the quarter. Output was unchanged in goods-producing industries, with industry changes as follows: utilities (+2.2%); manufacturing (+1.1%); construction (−1.7%); and, primary industries (−2.0%). Output in the service industries rose 0.7%, including industry changes as follows: other services (+1.2%); real estate, rental and leasing (+0.9%); health, education and public administration (+0.8%);  retail trade (+0.8%); professional and administrative services (+0.7%); wholesale trade (+0.2%);  and, finance and insurance (+0.2%).

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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 third quarter of 2018. In total, output by manufacturing industries increased 1.1% in the quarter. The change in output of each manufacturing industry is as follows: chemical and petroleum (+5.1%);  plastic and rubber (+2.8%); food, beverage and tobacco (+2.6%); machinery (+0.7%); primary and fabricated metal (+0.7%); electrical and electronic (+0.4%); transportation equipment (−0.4%); other manufacturing (−0.6%); textile, clothing and leather (−1.3%); paper and printing (−2.7%); and, wood and furniture (−2.8%).

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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 third quarter of 2018. Canadian real GDP grew 0.5% in the third quarter, following a 0.7% gain in the second quarter. The largest gain over the period was 1.1% in the third quarter of 2016 and the second quarter of 2017, and the largest decline was 0.5% in the first quarter of 2015 and the second quarter of 2016.

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Jurisdictional Comparisons: Quebec Real GDP Growth

The bar chart illustrates Quebec’s quarterly per cent real GDP growth from the first quarter of 2014 to the third quarter of 2018. Quebec real GDP grew 0.6% in the third quarter, following a 0.3% increase in the second quarter. The largest gain over the period was 1.1% in the second quarter of 2017, and the largest decline was 0.2% in the first quarter of 2014.

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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 third quarter of 2018. U.S. real GDP grew 0.8% in the third quarter, following a 1.0% gain in the second quarter. The U.S. has experienced real GDP growth over the entire period, with the exception of the first quarter of 2014 (−0.3%). The largest gain over the period was in the second quarter of 2014 (+1.3%).

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Employment: Ontario’s Labour Force

The chart indicates the change in Ontario’s employment and unemployment rate in 2018. Ontario’s employment rose by 114,400 net new jobs in the 2018. The unemployment rate was 5.6% in 2018.

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Employment: Employment Gains

The bar chart illustrates the annual change in Ontario’s employment from 2000 to 2018. Employment rose by 114,400 in 2018, following a gain of 128,400 in 2017. The largest gain over the period was in 2000 (+179,600) and the largest decline was in 2009 (−177,600).

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Employment: Unemployment Rate

The line chart shows Ontario’s annual unemployment rate from 2000 to 2018. In 2018, Ontario’s unemployment rate was 5.6%, the lowest point over the period. The unemployment rate has been steadily declining since its peak in 2009 (9.1%).

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Sales and Trade: Retail Sales

The line chart shows Ontario’s retail sales in billions of dollars from January 2014 to October 2018. Ontario’s retail sales have trended upwards since January 2014. Ontario’s retail sales advanced 4.3% over the first ten months of 2018.

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Sales and Trade: Wholesale Trade

The line chart shows Ontario’s wholesale trade in billions of dollars from January 2014 to October 2018. Ontario’s wholesale trade has trended upwards since January 2014. Ontario’s wholesale trade rose 3.2% over the first ten months of 2018.

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Sales and Trade: Manufacturing Sales

The line chart shows Ontario’s manufacturing sales in billions of dollars from January 2014 to October 2018. Ontario’s manufacturing sales have trended upwards since January 2014. Ontario’s manufacturing sales rose 3.9% over the first ten months of 2018.

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Housing: Home Resales

The line chart shows Ontario’s home resales in units from January 2014 to November 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 November 2018, home resales were about 16,000 units. Ontario’s home resales declined 13.5% over the first eleven 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 November 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 $547,000 in May 2018, and have since risen to $570,000 in November 2018. Ontario home resale prices have declined 1.7% over the first eleven 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 December 2018. Ontario’s housing starts reached a peak of 106,000 units in February 2018, but declined to 70,000 units in December 2018. The low over the period was just under 42,000 in February 2015. Ontario’s housing starts decreased 0.5% annually in 2018.

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Global Economic Developments: Real GDP Growth

This bar chart shows quarterly percentage changes in real GDP for the U.S., the United Kingdom, the Euro area and Japan for the second and third quarters of 2018. In the second and third quarters of 2018, U.S. growth was 1.0% and 0.8%; United Kingdom growth was 0.4% and 0.6%; Euro area growth was 0.4% and 0.2%; and, Japan growth was 0.7% and −0.6%.

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Global Economic Developments: U.S. Net Trade Contributions to Real GDP Growth

The bar chart shows net trade’s quarterly percentage point contribution to U.S. real GDP growth from the first quarter of 2015 to the third quarter of 2018. The contribution was −2.0 percentage points in the third quarter of 2018, the largest negative contribution over the period. This followed a 1.2 percentage point contribution in the second quarter, the largest contribution over the period.

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Global Economic Developments: U.S. Labour Market

This chart shows the U.S. unemployment rate in per cent as a line and employment growth in thousands of workers as bars, from January 2015 to December 2018. Over this period, employment has increased every month, and the unemployment rate has shown a downward trend. In December 2018, the U.S. unemployment rate was 3.9% and employment increased by 312,000 jobs.

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Global Economic Developments: Government of Canada T-Bill and Bond Rates

This line chart shows the yield curve for Government of Canada bonds as of September 18, 2018 and December 31, 2018. On September 18, 2018, interest rates were as follows: 3-month: 1.6%; 2-Year: 2.3%; 5-Year: 2.4%; 10-Year: 2.5%; and, Long-Term: 2.5%. On December 31, 2018, interest rates were as follows: 3-month: 1.6%; 2-Year: 1.9%; 5-Year: 1.9%; 10-Year: 2.0%; and, Long-Term: 2.2%.

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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 exchange rate (cents U.S.) between January 2015 and December 2018. Both series declined from early 2015 through early 2016. Subsequently, the Canadian dollar rose, peaking at about 82 cents in September 2017 and has since declined to below 74 cents U.S. by the end of December. WTI oil prices rose steadily since 2016 and stood at about 76 U.S. per barrel in early October before declining to below $46 U.S. per barrel by late-December.

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Global Economic Developments: Stock

The line chart shows the daily value of the S&P 500, Nikkei, S&P TSX and Euro Stoxx 50 stock indexes from January 2015 to December 2018. Between early September and the end of December, the S&P 500 (−13%), S&P/TSX Composite (−11%), Euro Stoxx 50 (−9%) and Nikkei (−12%) all declined.

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In Focus: Residential Investment as a Share of GDP

The line chart shows residential investment as a share of Ontario’s GDP from the first quarter of 2000 to the third quarter of 2018. The share rose steadily from about 4.7% in early 2000 to a peak of 9.4% in the first quarter of 2017. Since, the share has declined to 8.0% in the third quarter of 2018. 

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In Focus: New Home Construction

The line chart shows real investment in new home construction in billions of dollars from the first quarter of 2000 to the third quarter of 2018. New home construction declined from over $25 billon in the first quarter of 2005 to below $15 billion in the third quarter of 2009. Since then, new home construction has trended upwards. In the third quarter of 2018, new home construction investment was about $24 billion.

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In Focus: Renovations and Ownership Transfer Costs

The line chart shows real investment in renovations and ownership transfer costs in billions of dollars from the first quarter of 2000 to the third quarter of 2018. Renovation investment has trended up over the period, from about $8 billion in the first quarter of 2000 to about $23 billion in the third quarter of 2018. Ownership transfer costs generally trended up from 2000 (from about $8 billion) until the first quarter of 2017 (to about $15 billion). Since then, ownership transfer costs declined sharply to under $10 billion.

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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 goods-producing industries accounted for 22.9% of nominal GDP, including manufacturing (12.3%), construction (6.9%), utilities (1.9%) and primary (1.8%). The service producing industries accounted for 77.1% of nominal GDP, including other services (15.5%), real estate and rental and leasing (12.9%), health and education (12.9%), wholesale and retail trade (11.4%), finance and insurance (9.5%), public administration (7.1%), transportation and warehousing (4.2%) and information and culture (3.6%).

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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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