ECONOMY OF ONTARIO

Here you will be knowing the Economy of Ontario and its downfall due to the COVID-19 pandemic. There are a lot of advancements made every day which will enable businesses to cut costs and increase sales by which automatically there will be an impact on the Economy.

Ontario is Canada’s second-largest province and expected to reach a total population of 14 million by the end of 2021. It has a GDP of 1.86 trillion. Ontario’s real gross domestic product increased by 2.1% in the fourth quarter of 2020.

Ontario’s economy thrives through its unique combination of resources, manufacturing expertise, exports, and a drive for innovation. The government is focusing on fostering a dynamic competitive business environment in which innovation thrives. Ontario’s continued economic growth has occurred in the face of intensified international competition and uncertainty in the global market. The government of Ontario is supporting and attracting investment in financial and technology sectors which will provide significant new economic opportunities.

Ontario’s highly diversified economy offers excellent opportunities in all sectors ranging from Aerospace (including Defence), Automotive (including Water technology), Financial Services (including Banking and Financial technology), Food and Beverage Manufacturing (including Confectionary), Industrial Automation and Robotics, Information Technology (including Interactive Digital Media, Wireless Technology and Networks), Life Sciences (including Medical Technology and Pharmaceuticals), Mining (including Exploration and Mine Development) and Tourism. Agriculture and natural resources are also important economic sectors.

Broad-based shutdowns in response to the COVID-19 pandemic are projected to result in a 5.9 percent drop in Ontario's real GDP in 2020, the largest annual decline in economic output on record. Assuming vaccines are distributed to the general population over the course of 2021 and government lockdown restrictions are progressively eased, Ontario’s economy is expected to rebound strongly with growth of 3.9 percent in 2021 and 4.5 percent in 2022.

In addition to temporary COVID-19 spending, the 2020 budget allocated $3.0 billion to its standard contingency funds in the 2020–22 to 2022–23 period are much larger than usual. The government has yet to clearly indicate the specific purpose of the sharp increase in these funds after the pandemic. Any unused contingency funds would be applied to reduce projected deficits