Ontario’s GDP is expected to be the highest of all the provinces in 2015.
According to the recent Provincial Outlook report by RBC, it is expected the province’s growth will increase from 2.5 per cent in 2014 to 3.3 percent by 2015.
British Columbia came in second with a forecast of 3.1 per cent and Manitoba in at third with 2.8 per cent.
Ontario’s GDP forecast:
2014 – 2.5 per cent
2015- 3.3 per cent
2016 – 2.7 per cent
Some of the reasons for Ontario’s rise in GDP include:
- decrease in oil prices
- drop in Canadian dollar value
- cut interest rate by Bank of Canada
As a manufacturing-based export economy, Ontario benefits from both lower energy costs and a low Canadian dollar.
In the Ontario market, there has been an increase in consumer spending, which is up 14.4 per cent. Automobile sales are up 8.5 per cent.
RBC Economic researcher Craig Wright explained ” with the drop in gas prices, Ontarians now have money to spend on other goods and services, pay down on debt and are able to save money“.
This is one of the two factors, the other being the US economy, that has contributed to the growth of Ontario’s GDP.
Photo courtesy of Google images.