Ontario recorded third weakest growth in business investment in last two decades
TORONTO, Sept. 28, 2021 (GLOBE NEWSWIRE) – Ontario has experienced low business investment over the past two decades with one of the lowest growth rates in the country, according to a new study released today by the Fraser Institute, an independent partisan Canadian public policy think tank.
“The decline of Ontario’s manufacturing sector in the 2000s, the 2008-2009 recession and a timid recovery combined to create a prolonged period of economic weakness for the province,” said Ben Eisen, senior researcher at the ‘Fraser Institute and co-author of an assessment of recent economic performance and growth in business investment in Ontario.
“Business investment is at the heart of improving our standard of living and creating jobs, and the poor performance of the province should be of great concern,” Eisen commented.
The study finds that the average business investment rate per person in Ontario (adjusted for inflation) from 2000 to 2019 (excluding 2020 due to the COVID-19 pandemic) was lower than it was in the other major Canadian provinces. Specifically, business investment per capita in Ontario grew, on average, only 0.3% between 2000 and 2019, compared to 2.7% in British Columbia, 1.5% in Alberta and 0 , 9% in neighboring Quebec.
In fact, the province’s average business investment growth rate (inflation-adjusted population) from 2000 to 2019 was the third lowest in Canada, just ahead of New Brunswick and Nova Scotia. .
It is not surprising that the dismal growth in business investment has had an impact on the economy as a whole. The province’s economic growth was considerably higher in the 1980s and 1990s than in the 2000s and 2010s.
“Business investment contributes to economic growth, job creation and rising wages,” Eisen said.
“Ontario’s position near the bottom of the Canadian provinces does not bode well for the province’s future prospects.