Provincial Outlook Economic Forecast: Ontario—Spring 2018

Document Highlights

After posting solid 2.8 per cent growth in 2017, economic growth over the near term will slow down to the 2.0 per cent range.

A higher minimum wage in 2018–19, together with tightening labour conditions and weak investment spending, will take some steam out of Ontario’s labour market.

Despite solid growth in the U.S. economy and a competitively valued loonie, export growth will remain weak, due in part to limited room to expand production.

Housing starts will decline over the near term due to the policies implemented by the provincial and federal governments to cool the Greater Toronto housing market.

Unless steps are taken to lower spending, Ontario’s net debt will hit the $360-billion mark by 2020–21.