Cautious Outlook for 2010

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A new report shows that recovery might not have taken hold in Ontario, but by next year it should get much better despite the tens of thousands out of work and factories closing at the moment.

Ontario’s manufacturing and wholesale trade sectors have been stabilizing, and the U.S. is on the uptick.

What this means for us is that there should be a return of some sort of economic normalcy notes the Conference Board of Canada on Thursday in its autumn provincial outlook.

The analysis is what most big bank economist have been saying for months, however not many people can see it as yet, especially since recovery has only just started since the summer.

The board is suggesting that Ontario can expect around 23,000 new jobs. This is a small number in comparison to the amount lost, but it is expected that it might push the national unemployment rate to around 10% at some point in 2010, from the current 8.6%.

With the huge fiscal stimulus packages in both the U.S. and in Canada, the relationship between Canada’s industries and the U.S. are beginning to look better.

At the macro level, after a Gross Domestic Product (GDP) of 2.1%, the board predicts a national GDP growth of around 2.9%, and an even larger 3.6% in 2011.

It has been said that Ontario’s economy should be expand by 3.2% in 2010.

The recovery is expected to be led by British Columbia, which is riding out the recession on a construction and service boom as a result of the upcoming 2010 winter Olympics.

It has been noted that British Columbia’s economy should grow by 4.2% in 2010.

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