Economy of Ontario

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The Toronto-Dominion Centre in Toronto

The Economy of Ontario is a rich and diversified economy, however it is several hundred millions of dollars in debt. Ontario has the largest economy in Canada, its GDP being nearly twice that of neighbouring Quebec, the second largest economy.^[1][2][3] The Ontarian economy is highly influenced, and run by the service sector, though manufacturing also plays an important role.^[4]

Ontario is the most populous province of Canada, with a population of about 12.5 million permanent residents.^[5][6] It is Canada's leading manufacturing province accounting for 52% of the national manufacturing shipments in 2004.^[7]

Inflation is slowly reducing in Ontario, it was 2.2% in 2005, and is forecasted to be 2.1% in 2006, and 1.8% in 2007.^[7]

Ontario has an unemployment rate of 6.3%, equivalent to the unemployment rate of Canada as a whole.^[8]

Ontario's main exports are motor vehicles parts and accessories (40.4%), Machinery and mechanical appliances (10.8%), electrical machinery & equipment (5.6%) and plastic (4.1%). ^[9]

Ontario's main imports are motor vehicles parts and accessories (22.3%), machinery and mechanical appliances (17.7%), electrical machinery and equipment (10.8%), plastic (4.2%) and scientific, professional and photo equipment (3.6%).^[10]

[edit] History

In the 19th century, Ontario was mostly unexplored and the amount of natural resources within the province was yet to be recognized. Vast amount of land in the province was forest, at the time, the demand for lumber was enormous as wood was needed for heating and building ships, houses, furniture and railways. During the Napoleonic wars, Britain was cut off from its wood supply from the Baltic Sea and was in desperate need for wood.^[11]

To be completed

[edit] Sectors

[edit] and Agriculture and its economic income

Statistics Canada^[12] indicates that the farm population in 2001 was 186,085 which is a steep −15.9% decline from 1991's 221,230 farm population.^[13] Though urban farm population isn't dropping as fast as the rural, urban farm population dropped by 10%, compared to the rural's −16%.^[13]

The 2001 Census of Agriculture^[14] indicates that the number of farms has declined sharply between 1996 and 2001, continuing a long-term trend.^[15]The 2001 Census of Agriculture counted 59,728 farms in Ontario that's an 11.5% decline since 1996, which is higher than the decline of 10.7% national average.^[15]

A farm, near Kitchener.

Even though farms are rapidly reducing in Ontario, Ontario still possesses the highest number of farms in comparison to the provinces and territories, with roughly 59,728. Alberta came second with 53,652, and Newfoundland & Labrador had the fewest with 643 farms.^[15] Ontario’s farms nationwide have declined slightly during the past two decades. In 1981, Ontario accounted for 26% of the national total. By 2001, it had declined to 24%.^[15]

Although, the number of farms in Ontario is decreasing,^[15] the size of farms are increasing.^[16] The average Ontario farm size was 226 acres in 2001, up 9.7% from 1996. Since 1981, the average farm size has increased by 24.9% from 181 acres.^[16]

Ontario’s total farm area has declined 2.7% since 1996 to 13,507,357 acres (54,662 km²) in 2001. However, cropland increased 3.2% to just over 9 million acres (36,000 km²), the highest level since 1941. Eastern Ontario led the increase with a gain of 9.2% in cropland.^[16]

[edit] References