Ontario Chamber of Commerce 8th Annual Ontario Economic Report

The unemployment rate returned to pre-pandemic levels of 5.6 percent, and inflation as measured by the Consumer Price Index (CPI) continued to trend downward and is on track to fall within the Bank of Canada’s inflation-control target range of 1-to-3 percent in 2024 (2.9 percent). [...] High inflation in the preceding years and the consequent interest rate hikes contributed to a slowdown in the Canadian economy in 2023. [...] Amid changing economic conditions during the year, including sticky inflation and forecasts of an economic slowdown in 2024 and 2025, the Ontario government revised the estimates in its 2023 Fall Economic Statement, budgeting higher contingencies to mitigate near-term risks, and projecting larger deficits of $5.6 billion in 2023–24 and $5.3 billion in 2024–25, followed by a small surplus of $0.5 b. [...] This is likely attributed to the region being home to a tighter labour market with weaker growth in the working-age population relative to other regions in Ontario and surging cottage-country and retirement living. [...] The OCC’s mission is to convene, align and advance the interests of its members through principled policy work, value-added business services and broad engagement to drive competitiveness and economic growth in the province Thank you to our Lead Partner Thank you to our Presenting Partner Thank you to our Research Partners Authors: Claudia Dessanti, Senior Manager of Policy, Ontario Chamber of Com.