TORONTO, ONTARIO--(Marketwire - Nov. 21, 2011) - The expected global economic slowdown will hit all regions of Ontario next year and will hinder economic growth in the province, according to the Economic Analysis of Ontario, released today by Central 1 Credit Union.
"Toronto will lead the province in most categories, along with Kitchener-Waterloo-Barrie and London, but even their pace will be slow," says Helmut Pastrick, Central 1's chief economist. "The regions that will lag through to 2013 are Kingston-Pembroke, Stratford-Bruce and the Northeast."
Pastrick said the Northeast won't grow faster until the U.S. economy picks up, while Kingston-Pembroke will be slowed by its dependence on government spending. The Stratford-Bruce region will depend on construction and utility projects for growth. Only in the three faster-growing regions has employment surpassed pre-recession levels, and in the other regions that won't change through 2013.
The regions in the middle performance group are Ottawa, Muskoka-Kawarthas, London, Windsor-Essex and the Northwest. Each has unique characteristics tied to their economies that will determine employment and growth opportunities. The Central 1 report examines each region in detail.
Toronto will lead the province in housing sales, construction and price gains in 2013, but prices in all regions will reach record highs, Pastrick forecasts.
The report says that overall Ontario's economy will grow by 2.1 per cent in 2011, 1.8 per cent in 2012 and 2.6 per cent in 2013, but there is a risk that the European debt situation could undercut these predictions.
Highlights of the report:
"Our detailed analysis shows the wide variations across the province and illustrates how difficult it will be for the province to spur widespread growth, while at the same time reducing its deficit," Pastrick said.
The full report, Economic Analysis of Ontario, is available at the following link: http://www.central1.com/publications/economics/pdf/ea/ea%202011_ont03.pdf.
Central 1
Central 1 is the central financial facility and trade association for the B.C. and Ontario credit union systems. Central 1 represents a consumer-oriented, full-service retail financial system that serves 2.9 million members. Central 1 holds some $15 billion in assets and employs more than 550. It is owned primarily by its member credit unions, 45 in B.C. and 113 in Ontario.
With offices in Vancouver, Mississauga, and Toronto, Central 1 provides a wide range of services such as liquidity management, direct banking, and flexible payment service solutions. For more information, visit www.central1.com.
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