Ontario getting poorer, while N.L. shines: economists
Last Updated: Friday, June 22, 2007 | 2:39 PM NT
Ontario's economy will face more sub-par growth this year, while Newfoundland and Labrador's will grab the top spot, according to two major banks' provincial forecasts released Friday.
Ontario's real GDP will grow by just 1.8 per cent this year, BMO Capital Markets says in its forecast. It's the weakest growth prediction in the country.
RBC Economics GDP Outlook (% growth)
Province 2006 2007 2008
N.L. 2.8 7.5 0.5
P.E.I. 2.0 1.9 1.7
N.S. 1.1 2.4 2.3
N.B. 2.6 2.5 2.6
Que. 1.7 2.1 2.6
Ont. 1.9 1.9 2.7
Man. 3.3 3.0 3.2
Sask. 0.4 4.0 3.6
Alta. 6.8 4.6 4.0
B.C. 3.6 3.2 3.3
Canada 2.8 2.6 2.9
Source: RBC Economics
RBC Economics lowered its growth estimate for Ontario's economy to 1.9 per cent in 2007 — tied with P.E.I.
Both forecasts cite the strong Canadian dollar as an ongoing challenge for the province. BMO Capital Markets also blames higher energy prices (because Ontario is a major importer of energy) and weak U.S. auto sales (affecting the Ontario-centred auto industry).
RBC economists also cite a weak U.S. housing market and a "crushing corporate tax burden" that are pressuring Ontario's manufacturing sector.
RBC predicts Ontario's economy won't recover until 2009, when the auto industry is expected to rebound with the opening of new assembly plants.
Read it all here.
Canada accepts too many immigrants to begin with. We accept around 250,000 to 260,000 a year, refugees included. Most of these immigrants do not enter the country as skilled labour but mostly as sponsored relatives or as abusers of the investor class or refugee system. We import more immigrants per capita then any other industrialized nation and give away our citizenship like prizes in cereal boxes.
Canada didn't always accept this many. Believe it or not, our immigration system actually served the interests of the nation at one time. We took in immigrants in accordance with economic need. Now we just take in immigrants regardless of the situation. Prior to the mid 1980s Canada accepted less than 150,000 per year. The Liberal party is the traditional party of choice for most immigrants yet under the leadership of Trudeau the Liberal party decreased immigrant numbers because it was economically sound. Then along came the PC government under the inept leadership of Brian Mulroney and he decided that Canada needs more immigrants and so, poof, he upped it by 100,000. No real reason behind this decision of course. He just thought Canada needed more immigrants. Because of settlement and immigrant voting patterns the Conservatives cannot get elected in the Canada's three major cities. Now that’s what I call leadership.
Ontario receives around 40% of all immigrants to this country, more so than any other province, and this is costing Ontarians. Tax dollars are being misspent to support a dysfunctional and bureaucratic system instead of being used to stimulate economic growth. I would not be surprised if mass immigration is one of the major factors contributing to Ontario’s poor economic outlook.