November 2010 Update
HIGHLIGHTS
- Ontario’s real GDP advanced by 0.6% in Q2 2010 compared to the previousquarter, matching national growth and outpacing U.S. growth.
- The manufacturing sector continues to limit provincial employment growth.Many manufacturers became more efficient during the recession, allowingthem to be profitable with fewer employees.
- The research intensive ICT industry showed well in a recent ranking ofCanada’s top corporate R&D spenders in 2009. Half of the top ten spenderswere Ontario-based ICT companies.
- While the strong Canadian dollar still weighs on the tourism sector, thenumber of international visitors entering Ontario finally increased in Q4 2009and Q1 2010 before retreating slightly in Q2. Accommodation services firmsare adding jobs and hotel occupancy rates have begun to improve.
- Investment in the clean energy sector continues to pick up steam, despiteinternational opposition to the domestic content requirements in theprovince’s Green Energy Act.
- While the U.S. economy has resumed growth, relatively weak consumptionand ongoing challenges in the housing sector could limit demand for Ontarioexports.
- Ontario’s economy is forecast to grow by 3.4% in 2010, exceeding nationalgrowth, though recovering from a more severe decline in 2009. Employmentis expected to advance by 1.9% while the unemployment rate recedes slightlyto 8.8%.
