Ontario’s economy is on the rise, but the Government of Ontario says the province isn’t immune to slowdowns.
The report released on August 14 gives updated information about Ontario’s economy and the first changes we’ve seen since the 2023 Ontario Budget was released.
In the first calendar quarter of 2023, Ontario’s real gross domestic product increased by 1.0 per cent, supported by growth in exports and household spending. This follows a slight decline of 0.2 per cent in the fourth quarter of 2022.
Ontario’s real GDP stood at 4.9 per cent higher than pre-pandemic levels shown in the final quarter of 2019.
Private sector forecasters have been raising their GDP expectations for 2023 because of “better-than-expected” economic performance so far.
The Government of Ontario says GDP growth expectations will dwindle in 2024, however. They site the Bank of Canada’s rapid policy interest rate increase as a leading cause to this drop.
Currently, the economy is supporting the expected projection sought out in the 2023-24 Ontario Budget: projecting revenues of $204.4-billion, expenses of $204.7-billion, and the province’s deficit to be $1.3-billion.
Written by: Noah Lorusso
