Toronto Dominion (TD) Bank Group revised its gross domestic product (GDP) growth projections for Canadian provinces on January 26, 2015. Within TD Bank Group's update to its Provincial Economic Forecast, the outlook for Ontario's economy in 2015 was elevated from 2.5% to 2.7%. The report went on to predict that Ontario will lead Canada's economic growth in 2015 and 2016.

Non-resource based economies (like Ontario's) are expected to further benefit from energy cost savings and an accompanying depreciation in the Canadian dollar.

– TD Bank Group, Provincial Economic Forecast

GDP Growth Projections for 2015

Ontario businesses benefit from low price of oil, weak Canadian dollar, and strong U.S. recovery

Ontario is benefiting from the low price of oil and weak Canadian dollar, but it also owes its recent upswing in demand to a strong economic recovery in the United States. While the majority of the International Monetary Fund (IMF)'s GDP growth projections were also scaled back amid the rapid descent in the price of oil, the United States, Ontario's largest importer, was one of a few countries that had their forecast revised up – and fairly significantly. As of January 19th, 2015, IMF projects 3.6% growth from the United States in 2015, compared with the 3.1% estimate released in December 2014.

Although Canada's standing as a net producer of oil may put downward pressure on growth projections for the country as a whole, and on the Canadian currency – prospects for business in Ontario look bright. Ontario manufacturers stand to gain from the lower price of oil, while the weak Canadian dollar has already resulted in increases in demand from a growing U.S. market. Businesses relocating to Ontario are poised to profit from this favourable mix of economic factors.

View TD Bank's full report here: TD Economics, Provincial Economic Forecast, 2015

 

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February 20, 2015

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