Positioning Ontario For Long-Term Economic Growth
McGuinty Government Taking Action Today For A Sustainable Future
Ministry of Finance
Ontario's Long-Term Report on the Economy, released today, highlights the challenges and opportunities the province may face over the next 20 years, while outlining measures the government is taking to prepare the province to grasp opportunities emerging in the new economy.
The report identifies slowing growth in the working-age population along with an aging population and rising global competition as challenges the province will face. The government's initiatives for improving overall productivity and future economic growth include modernizing the tax system, ensuring environmental sustainability, investing in infrastructure and key services such as health care and education, while continuing to be prudent with its fiscal management.
Key projections of the report include:
- Ontario is projected to see healthy population growth of 28 per cent, a gain of almost 3.7 million people - for a population total of 16.7 million by 2030 - driven by immigration.
- Seniors will account for 21.9 per cent of Ontario's population by 2030, compared to 13.7 per cent today, which is expected to increase demand for health care.
- Working-age population share (ages 15-64) will decrease from 69.4 per cent of the population in 2009 to 61.5 per cent by 2030.
- Expanding productive capacity, increased tax competitiveness, and global and domestic demand are expected to result in average real GDP growth of 2.6 per cent in Ontario from 2010-2030, notwithstanding slower labour force growth and increased global competition.
- Ontario's Long-Term Report on the Economy is the McGuinty government's second long-range assessment of Ontario's economic future and is in accordance with the Fiscal Transparency and Accountability Act, 2004.
- This report is a projection of anticipated challenges and opportunities that will affect the province over the next 20 years.
- In the spring, the Finance Minister will present the 2010 Budget, which will provide an update on Ontario's fiscal plan.
Ontario's Long-Term Report on the Economy shows our government's commitment to looking beyond the next year or two, to position Ontario for long-term success. We are focused on investing in infrastructure, modernizing Ontario's tax system and building a stronger workforce with full-day learning for four- and five-year-olds - which will all have a long-term positive impact on our economy, our businesses and our families"