CIBC World Markets Inc: Ontario Economy Expected Grow Fast

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Author: Christopher Chan

Ontario’s economy is expected to outpace the national average in 2010 but it remains at risk to a high Canadian dollar, weak U.S. growth and high provincial deficits noted a new report from CIBC World Markets Inc.

Ontario outpaced the national average by a significant margin, the momentum carried into the first half to this year with Ontario’s full year growth rate expected to exceed the national average for the first time in 8 years.

The Growth Domestic Product (GDP) is expected to climb 2.4% in 2010 and 2.8% in 2011, once again falling behind the national average of 3.0%. It was noted that a harmonized sales tax, alongside cuts to corporate taxes will boost competitiveness and help lure jobs.

The CIBC report goes to find that the economic recovery will not be even across the country. Saskatchewan is expected to lead economic growth in Canada in 2010 with GDP up 3.0%. These solid prospects will continue to spur in-migration with population growth stronger than at any time in the past 30 years.

British Columbia will be the second strongest in 2010 with 2.8% growth.

The report goes to show that GDP will grow I 2010 however it is not to exceed the normal growth of 3.0%, but if all goes well, then 2011 should be the time when growth is exceed, balancing the growth for 2010.

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