Our lives have changed as Covid-19 spread. Canada faces a shutdown of commerce to protect health systems, while also weathering a crisis in its oil sector.
Prior to rise of the pandemic, Ontario's economy operated quite strongly
- Thriving tech sector and just 5.4% unemployment
- 1.7% growth in population
The labor market is expected to decline 3% in employment, representing 200, 000+ workers. Unemployment rate is 8.2%, but forecast to reach 10% in the next quarter.
Population growth, forecast to decline to 1% this year, will increase to 1.8% in 2021
Ontario GDP forecast to decline 2.8% in consumer-driven sectors. In 2021 it'll bounce back more than 4%, and fluctuate around 2 -2.5% as the epidemic eases.
Ontario's household consumption to decrease 3% in 2021 due to:
- A spike in layoffs
- Concerns about job security
Short-term support available as a base for recovery:
- Federal fiscal measures
- Wage subsidies for small businesses (up to 75%)
- Tax deferrals
- Extended income benefits
2021 Real-estate growth to reacg 4.4% with:
- The Insured Mortgage Purchase Program via CMHC
- Credit facilities & bond-buying programs
- Programs via Export Development Canada, Business Development Bank of Canada
- Extended income benefits