Welcome!

News Feed Item

The Fraser Institute: Ontario's Poor Economy Hurts the Rest of Canada

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/14/14 -- Ontario's poor economic performance is dragging down Canada's economy, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

The study, Can Canada Prosper without a Prosperous Ontario?, examines Ontario's shift from the economic engine of Canada to a "have not" province that received $3.2 billion in equalization payments from Canadian taxpayers in 2013/14.

"Because of Ontario's immense size and population, and because the Canadian economy is highly integrated, what happens in Ontario significantly affects Canada's national economy. An economically stronger Ontario means an economically stronger Canada," said Livio Di Matteo, study co-author, Fraser Institute senior fellow and economics professor at Lakehead University.

So what's happening in Ontario?

Over the past decade, but particularly since the recession of 2008/09, Ontario's economy has not performed on par with the rest of Canada, due in part to its slow economic growth and spiralling public debt.

For example, from 1981 to 2004, Ontario's per person GDP was either above or equal to the rest of Canada. However, by 2012 Ontario's per person GDP ($45,933) was 5.6 per cent lower than the rest of Canada ($48,643). And if data for Ontario were excluded, notes the study, Canada's per person GDP would be 2.2 per cent higher.

Additionally, since 2000, Ontario has recorded the third lowest rate of private sector job creation in the country, ahead of only Nova Scotia and New Brunswick. Specifically, Ontario's private sector employment growth between 2000 and 2013 totalled 14.1 per cent compared to first-place Alberta's 42.1 per cent or the 19 per cent national rate.

Moreover, from 2009 to 2013, the national unemployment rate, which averaged 7.6 per cent during that period, would have been 7.3 per cent if Ontario was excluded.

When measuring the level of business investment, the study finds that from 2003 to 2012, Ontario's average annual growth of business investment in things such as buildings, machinery and equipment was 3.0 per cent compared to 5.3 per cent for the rest of Canada.

Meanwhile, outside of Ontario, Canada has seen decent rates of economic growth in per person GDP and employment, particularly in resource-producing provinces.

"Ontario's poor record on GDP growth, employment and business investment reflects a damaged provincial economy that's dragging down the national economy," Di Matteo said.

So how can Ontario right its financial ship and lighten the load on the rest of Canada?

The study notes that Ontario could improve tax and regulatory competitiveness, boost its capital investment, reform energy and industrial policies, and make better use of Ontario's vast natural resources in forestry and mining.

"If Ontario adopts smarter policies focused on competitiveness and economic growth rather than interventionist government, it could unleash its private sector and improve Ontario's economy for the benefit of taxpayers in Ontario and across Canada," Di Matteo said.

Livio Di Matteo is in Toronto and available to media.

Follow the Fraser Institute on Twitter - Like us on Facebook

The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 86 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org

Contacts:
MEDIA CONTACTS:
Livio Di Matteo
Senior Fellow, Fraser Institute
Office: (807) 343-8545
Cell: (807) 355-0244
ldimatte@lakeheadu.ca

Jason Clemens
Executive Vice-President, Fraser Institute
(604) 714-4591
jason.clemens@fraserinstitute.org

For more information:
Mark Hasiuk
Media Relations Specialist, Fraser Institute
(604) 688-0221 ext. 517
mark.hasiuk@fraserinstitute.org

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...