The global economic slowdown will hit all regions of Ontario next year, hindering growth in the province, according to Central 1 Credit Union’s report, Economic Analysis of Ontario.
“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, chief economist with Central 1. “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.
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 Ontario’s overall economy will grow by 2.1% in 2011, 1.8% in 2012 and 2.6% in 2013, but there is a risk that the European debt situation could undercut these predictions.