Ontario's Economy Grows For Fifth Consecutive Quarter
McGuinty Government's Plan Drives Solid Growth in Business Investment
Ontario's economy continues to grow as real Gross Domestic Product (GDP) rose at an annualized rate of 1.0 percent in the third quarter of 2010 - the fifth consecutive quarter of growth. Ontario's economy has grown 3.6 per cent since turning the corner on the recession.
This quarter's growth was led by business investment and continued gains in consumer spending. Business spending on machinery and equipment increased more than 10 per cent. This reflects the positive impact of the HST that, when combined with other tax relief, cuts taxes on new business investment in half. Ontario's tax changes are aimed at making Ontario more competitive and encouraging new business investments. Additional changes include:
- Reducing overall business taxes by 28 per cent over three years
- Reducing small business income taxes by 18 per cent; and
- Eliminating the small business deduction surtax entirely.
The McGuinty government continues to help Ontario families and partner with businesses through its Open Ontario Plan, building a stronger economy that is creating new, good jobs and protecting the progress Ontarians have made in their schools and hospitals.
- Real consumer spending, which contributes more than 60 per cent to real GDP, increased 0.6 per cent in the third quarter, marking the sixth consecutive quarterly gain.
- Ontario has regained 96 percent of jobs lost during the recession. In 2010, Ontario's economy generated 119,700 net new jobs with almost 85 percent of them being full-time employment.
- Capital spending by Ontario businesses increased 8.7 per cent, the strongest quarterly gain since the fourth quarter of 1998.
“Five straight quarters of economic growth is a good sign, and we will keep working to strengthen the economy and encourage job creation. Our Open Ontario plan is working - businesses are investing in Ontario, we have recovered virtually all the jobs lost in the recession and economic growth is gaining momentum.”