Fourth quarter GDP in the US was revised down to 2.2% after a strong 5.0% number in the third quarter. Evidently the US economy isn't as strong as some had predicted.
What's that mean for Ontario? Now 2.2% isn't terrible, but there seems to be a media and Ontario provincial government narrative (see Toronto Star columnist Martin Regg Cohn for both) that strong US growth will propel Ontario's GDP growth to impressive levels.
With Ontario's manufacturing sector cratering, the thesis that strong US growth will spill over into Ontario makes less and less sense. And if US growth isn't that fantastic, that further undercuts the thesis that great growth is just around the corner in Ontario.
To be fair, the dollar dropping likely will have Ontario consumers switching from foreign tourism and the like and switching to instead buying goods and services in Ontario. That will give a boost to provincial GDP.
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