Ontario's Economy at a Glance
As Canada's most populous province, Ontario is the country's economic hub. It is the largest IT hub in North America after Silicon Valley and is also home to the continent's largest manufacturing sectors. The automotive industry ranks high, including the development of intelligent transportation through the province's Advanced Manufacturing Supercluster. Ontario is also home to a number of clean technology companies and the country's largest financial services industry, not to mention the federal government's presence in Ottawa, which attracts many businesses and international organizations. Other key sectors of Ontario's economy include aerospace, industrial automation and robotics, mining, forestry, food and beverage manufacturing, chemicals and biochemicals, life sciences (including pharmaceuticals, medical devices and biotechnology), information technology and tourism.
Toronto, a major financial center
As one of North America's top five financial centres, Toronto experienced a real financial boom in the 20th century when capital was massively invested in the mining sector. During this period, the development of the western part of the continent, the growth of the American economy, the phenomenal expansion of the automobile industry and the relocation of many head offices and factories to Toronto, which were previously based in Montreal, were added to the boom.
In the 1930s and 1940s, the highest tower in the Commonwealth was in Toronto and housed the Bank of Commerce. At the dawn of the 21st century, it was the powerful financial groups that gave the city its international reputation. The main Canadian banks (more than 50 internationally), the largest insurance companies, the country's main trusts are headquartered here, and the stock exchange (TSX) has become the2nd
largest in North America and one of the top 10 in the world. In 2016, according to the 7th and most recent edition of PwC's Cities of Opportunity study, which analyzes the economic, social, cultural and environmental performance of 30 major world cities, Toronto ranked3rd behind London and Singapore. In the fall of 2019, the Global Financial Centres Index (GFCI) released its 26th study of the world's major financial centres. Toronto dropped 18 points, losing its place in the world's top 10, from 7th to 11th place. Only one other North American city is in the top 10, and that is New York City, which remains at the top of the list. Unsurprisingly, the global financial centres that have distinguished themselves by taking 7 of the top 10 places are located in the Asia-Pacific region.North American Manufacturing Center
Stretching from the Midwest, in the Great Lakes region, to the U.S. East Coast, the Manufacturing Bel t represents a region that was marked by the development of heavy industry. In the 1970s, with the decline of this industry, it became known as the Rust
Belt because of the closure and abandonment of many industrial facilities. Over time, however, manufacturing has been renewed and diversified to include, for example, information technology and biotechnology.In Ontario, it is still a very important sector with key industries such as automotive, information and communications technology, biotechnology, pharmaceuticals and medical devices.
As far as the auto industry is concerned, it came to Ontario in 1904 when Ford Motor Company of Canada built its first plant in Windsor. One hundred years later, more than 2,600,000 light vehicles were produced in Ontario, surpassing its border rival, the state of Michigan. Ontario then became the largest jurisdiction in North America in terms of automobile production, home to hundreds of original equipment manufacturers and some 15 assembly plants run by the world's seven largest manufacturers. As a result of the economic slowdown in recent years and the "loss of momentum" of North American products in the face of Asian competition, several closures and layoffs have severely affected the provincial economy. The industry that once made Ontario's "heart beat" is gradually getting bogged down. General Motors (GM) announced the closure of its Oshawa assembly plant in the Toronto suburb of Oshawa by the end of 2019. However, the situation is dramatic: 300 jobs out of some 2,600 will finally be saved, while part of the plant will remain in operation thanks to an investment by GM of about $125 million US ($170 million Canadian).
While the province remains an important manufacturing centre, it should be noted that the tertiary sector is the largest part of the Ontario economy, accounting for about three-quarters. It is represented by business and financial services, professional, scientific and technical services, and arts and culture.The abundance of natural resources
Another great strength of Ontario's economy is the province's vast forests, extractive industries, rich farmland, countless and huge bodies of water and good hydroelectric potential.
In the agricultural sector, Ontario boasts more than half of the highest quality Class 1 land in the country. The main agricultural regions are Stratford-Bruce Peninsula, Hamilton-Niagara Peninsula, Kitchener-Waterloo-Barrie, London and Windsor-Sarnia, as well as part of the Northeast in the vicinity of Highway 11 (Timmins, Hearst...). Livestock farms (poultry, hogs, beef...), dairy production, cash crops (corn, soybeans, mixed grains...), fruit crops (grapes, apples, berries...), vegetables, nursery plants and flowers account for the bulk of Ontario's agricultural production. It should be noted, however, that the number of farms has declined significantly in recent decades, from 67,520 in 1996 to 49,600 in 2016.
Forestry is another important sector, supporting approximately 200,000 direct and indirect jobs across the province, as well as the mining industry, which is still of great importance today. While Ontario is a major producer of zinc, copper, gold, cobalt and silver, it is the nickel and platinum group metals that make the province stand out, ranking it among the top 10 producers in the world. The southern part of the province is home to the oil and gas industry, as well as non-metallic minerals such as salt, lime and gypsum.
One of the top tourist destinations in the country
Tourism is booming in Ontario. In fact, several regions have been experiencing exceptional tourist seasons for the past few years, even record-breaking ones with unprecedented occupancy rates. The three most visited tourist regions in Ontario are Toronto, the Niagara Peninsula and Ottawa, but more remote regions, such as the Bruce Peninsula, are also on the rise. The weak Canadian dollar plays a significant role in attracting Ontarians to spend their vacations in the province and attracting international visitors who find the exchange rate more than attractive. Asia (China, South Korea, India...), Europe (United Kingdom, Germany, France...), Mexico and the United States are among the main international arrivals at one of the five international airports, including Toronto Pearson, which rankssecond
in North America in terms of traffic, and 14 land border crossings. Nearly 200,000 businesses operate in tourism-related sectors (hotels, restaurants, transportation, etc.) for a total of approximately 390,000 jobs. This represents 5.5% of all jobs in Ontario and tourism receipts of more than $34 million.Political and social issues
Since being elected in June 2018, Ontario's Progressive Conservative government, under the leadership of Doug Ford, has become increasingly resented by Ontarians. Withdrawal of the common carbon market with Quebec and California, cancellation of the minimum wage increase, implementation of a controversial autism program, budget cuts in the education sector, etc., have caused the government to reach unpopular highs just one year after coming to power. It also undermines the rights of minority communities such as Franco-Ontarians (e.g., budget cuts in services to Francophones) and Aboriginal people (e.g., elimination of the Ontario Arts Council's Aboriginal Cultural Fund). The province is also experiencing other issues such as the increase in crime in Toronto and the growing labour shortage related to the aging population. And like almost everywhere else, there is also the need to monitor new technological sciences (artificial intelligence, big data, cryptomonnages, etc.), anti-feminism, systemic discrimination, tax havens, voting reform, fake news, the transformation of cities, the Trump effect on migratory flows in the south of the province, etc.
