Scotiabank Report Predicts Spending Cuts

A recent report published by Scotiabank Economics provided some reasons to be optimistic about Ontario’s economic performance while predicting spending restraint on the part of the provincial government.  Among the bank’s report’s findings are the following

  • Growth will slow in 2018-19 to 2%
  • A decline in consumer spending will be offset by increases in business investment
  • Ontario will enjoy good population growth from interprovincial migration, from immigration a large proportion of which will be economic immigrants and from natural population growth
  • The signing of the USMCA has removed some risks to growth
  • Ontario’s tech sector will continue to be a driver of growth
  • Private sector capital investment will contribute to growth
  • Non-residential construction will begin to ease in 2019
  • Sustainable job creation will ease in 2019 largely the result of waning household spending
  • The province’s debt and deficit are a drag on growth 
  • Spending restraint on the part of the provincial government is very likely
  • Home buying will stay at elevated levels
  • Ontario’s major cities are gaining international reputations
  • Housing affordability and the government’s fiscal circumstances remain as risks

The full report is available by clicking on the following link: https://gbm.scotiabank.com/scpt/gbm/scotiaeconomics63/on_outlook_2018-10-10.pdf