Provincial Outlook Economic Forecast: Ontario—Summer 2018

Document Highlights:

• The Ontario economy will expand by slightly less than 2.0 per cent in both 2018 and 2019.
• Weaker household spending is a major factor behind the softer outlook.
• Housing starts will continue to decline over the near term due to the policies implemented by the provincial and federal governments to cool the Greater Toronto housing market.
• A 25.0 per cent tariff on Canada’s auto exports to the U.S. would have a devastating effect on Ontario’s economy.
• The elimination of the cap-and-trade program could lower gasoline prices but will reduce government revenues by $1.9 billion annually.