With news that the Canadian GDP growth in the third quarter only increased at 0.6% on an annualized basis, one has to wonder what the number was for Ontario. We won't get the provincial number for a while, however assuming it is close to the federal one, that means with population growth of around 1.2% per year in Ontario, Ontario probably had negative GDP growth per capita, which isn't good for tax revenues or for the deficit.
From the above linked CBC article:
"Statistics Canada said Friday the country's gross domestic product
expanded at a 0.6 per cent annualized pace, down from 0.8 per cent
during the second quarter because of less investment by businesses and
slumping exports.
For comparison purposes, the U.S. economy is currently expanding at a 2.7 per cent annual pace.
Canadian exports shrank by two per cent during the period, the largest decline since the second quarter of 2009."
So the previous quarter also likely had negative GDP growth for Ontario, so it's not a one off. For Ontario, was the decline in exports from manufacturing or petroleum products or a mixture of both? If it is from a decline in petroleum products, Ontario's third quarter performance may not be that bad, if not then Ontario's growth could be the same or worse than the federal number.
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