Strategic Investments Creating Foundation for Prosperity
Province Releases Long-Term Report on the Economy
Ontario released a report today that highlights how the investments the government is making will help support inclusive economic growth and address the demographic and economic trends of the coming decades.
The Long-Term Report on the Economy projects the province's population will grow from 14 million today to 17.8 million by 2040. This growth will significantly increase the demand for health care services, schools, transit and improved roads and bridges.
By developing a highly skilled workforce, making health care more accessible and efficient, building modern infrastructure and supporting business innovation and growth, the report shows that Ontario is in a position to grow and experience greater prosperity for years to come.
The province is focused on ensuring everyone is able to benefit from and contribute to that growth. People are feeling insecure in a changing economy, and the government is committed to working with all regions of the province to help create jobs and prosperity.
Actions include:
- Making college and university free for more than 210,000 students starting this September -- and more affordable for students and families across the province through the Ontario Student Assistance Program.
- Supporting new opportunities for youth, women, Indigenous peoples, people with disabilities and seniors.
- Making the largest infrastructure investment in hospitals, schools, public transit, roads and bridges in the province's history. According to a forthcoming study by the Centre for Spatial Economics, every dollar invested in infrastructure results in an increase of nearly $6 in real GDP over the long-term.
- Maintaining a competitive tax environment through business tax reforms that have included Corporate Income Tax rate cuts and eliminating the Capital Tax.
The report also shows how Ontario's diversified economy, which has a strong track record of weathering major economic challenges, such as the 2008 global financial crisis, is positioned to do well in the future.
Supporting inclusive growth that works for all is part of Ontario's plan to create jobs, grow our economy and help people in their everyday lives.Quick Facts
- The report projects the number of employed Ontarians will grow from 7 million in 2016 to 8.6 million by 2040. The unemployment rate is projected to decline from 6.5 per cent in 2016 to 5.5 per cent by 2040.
- Labour productivity, a key driver of Ontario’s prosperity, is projected to continue to grow at its long-term historical pace of an annual average of 1.2 per cent.
- Ontario’s real GDP per capita is expected to improve, reflecting continued economic growth. It is projected to increase by 29 per cent, to reach $62,000 by 2040 from $48,000 in 2015.
- The Ministry of Finance prepares Ontario’s Long-Term Report on the Economy as required by the Fiscal Transparency and Accountability Act, 2004. The previous report was released in 2014.
- For the first time, the report includes detailed demographic information by region.
- The Minister of Finance will present the 2017 Budget in the spring, which will provide an update on Ontario’s fiscal plan and path to balance.
Background Information
Quotes
“Ontario’s strength has always been our people. As a forward-looking government, we are putting in place measures today that will help us address the challenges of tomorrow. Whether transitioning skilled workers to new careers or transforming assistance to provide free college or university tuition for students with financial need, we’re focused on preparing people of all ages for success in a dynamic economy.”
Charles Sousa