In this edition:
- Ontario economic growth projected to slow sharply in 2023
- Metrolinx says threatened strike averted as tentative offer to be presented to union
- Federal pandemic response totalled $76 billion for 2021–2022
- Number of paid employees in Canada fell by 22,000 in August
- Halloween recount for Port Colborne councillor position after tie
Ontario economic growth projected to slow sharply in 2023
Ontario’s economy expanded rapidly in 2021 and 2022 as the province recovered from the pandemic, the Economic and Budget Outlook report provided by the Financial Accountability Office of Ontario (FAO) has revealed. However, Ontario’s economic growth is projected to slow sharply in 2023, reflecting the impact of higher interest rates, ongoing inflation and the weaker global environment. Real GDP growth of 3.3 per cent is projected for 2022, slowing to just 0.7 per cent in 2023, then stabilizing at 1.9 per cent over the rest of the outlook.
With a strong economy driving extraordinary revenue growth, the Province recorded a $2.1 billion budget surplus in 2021-22. While revenue growth is projected to slow from its current pace, it will continue to outpace program spending increases over the FAO’s outlook, leading to growing budget surpluses from $0.1 billion in 2022-23 to $8.5 billion in 2027-28. These surpluses are a substantial improvement compared to the deficits forecast in the 2022 Ontario Budget.
Metrolinx says threatened strike averted as tentative offer to be presented to union
The memo by Martin Gallagher, chief operating officer at Metrolinx, says the transit agency has confirmed a strike will not happen at the end of October.
Gallagher says this is “a positive development” and that trains and buses will continue to operate as scheduled.
ATU Local 1587 could not be immediately reached for comment.
Federal pandemic response totalled $76 billion for 2021–2022
Today, the Office of the Auditor General of Canada (OAG) released its Commentary on the 2021–2022 Financial Audits. The report shows that the government’s pandemic response continued to have an impact on the consolidated financial statements, with about $76 billion spent or loaned during that fiscal year. This amount represents 16% of the government’s 2021–22 program expenses, compared with 49% in the previous year. The government has also begun a multi-year process of identifying and collecting benefit payments it overpaid or made to ineligible recipients.
Number of paid employees in Canada fell by 22,000 in August
The number of employees receiving pay or benefits from their employer—referred to as “payroll employees” in the Survey of Employment, Payrolls and Hours—fell by 22,200 (-0.1%) in August. The overall payroll employment decline was led by losses in Quebec (-28,100; -0.7%) and Ontario (-13,800; -0.2%), which were partially offset by gains in British Columbia (+8,100; +0.3%) and Manitoba (+2,800; +0.4%).
Payroll employment in the goods-producing sector fell by 22,400 (-0.7%) in August. Construction (-21,900; -1.9%) recorded the largest decline, followed by mining, quarrying, oil and gas extraction (-1,800; -0.8%). Meanwhile, payroll employment in the services-producing sector showed little overall change.
Halloween recount for Port Colborne councillor position after tie
There will be a Halloween-day recount in Port Colborne, where there was a tie between two candidates for the position of Councillor in Ward 2.
Councillors Eric Beauregard and Angie Desmarais tied in Monday night’s election – both receiving 342 votes – tying for second place. Tim Hoyle came in first with 352 votes.
The recount will take place on Monday, October 31, 2022, at 1 p.m. at City Hall in Council Chambers, 3rd Floor, 66 Charlotte Street, Port Colborne. Members of the public are not permitted.
Niagara Economic Summit
Blake Landry to deliver report on Niagara economy at Summit
The national and international economies are turbulent, pulled in different directions by inflation, unleashed pent-up consumer demand, labour shortages, supply chain interruptions, war, and climate change. But how does it all affect Niagara? How much do these factors change our local economy, and are we vulnerable to any others? Does our specialization in the tourism and agri-food sectors make us more or less resilient?
As Niagara Region Economic Development’s Manager of Economic Research and Analysis, Blake Landry is the region’s foremost expert on the local economy. At the Summit, Blake will present a data-driven, evidence-based report on the economic developments we’ve seen over the last year, and where we expect to go in the next.
Contact us to submit your questions for Blake.
Click here for tickets to this year’s Niagara Economic Summit.
Focus on Markets
Biggest tech stocks lost $3 trillion in market cap over the last year
So here’s a good trivia question: Of the “FAANG” megacap tech stocks, which has lost the most market value over the past year?
Amid the earnings-related bloodbath so far this week, there have been huge losses. Alphabet, Microsoft and Meta have already posted their results, and tumbled in the wake of the reports. Thursday afternoon, Amazon and Apple are on tap.
A staggering $3 trillion in combined market cap has been lost in one year. Most of the losses have occurred across six of these stocks, but it’s hard to leave Apple off the list.
Remarkably, Apple shares have basically been flat – losing a measly $35 billion, by comparison.
Freefall in tech shows Wall Street grappling with ‘revenge of old economy’
The freefall in tech and other growth stocks shows that Wall Street is grappling with the “revenge of the old economy,” according to Goldman Sachs commodities chief Jeff Currie.
That comes amid an earnings season that has seen the likes of Tesla, Microsoft, Alphabet and Meta report weak quarterly results or offer disappointing guidance. In contrast, energy and industrial companies have largely reported upbeat numbers.
“All of the earnings coming out confirm this idea: the revenge of the old economy. Tech: missing substantially. You look at the energy names: all surprising to the upside,” Currie said in an interview with CNBC on Thursday.
He said poor returns on the old economy over the past decade had shifted capital to the tech and growth sectors, leading to underinvestment in energy and industrials that has led to supply problems today.
Through the Daily Updates, the GNCC aims to deliver important business news in a timely manner. We disseminate all news and information we feel will be important to businesses. Inclusion in the Daily Update is not an endorsement by the GNCC.
