Gloomy outlook in Ontario finance minister’s economic report
A gloomy picture is at the centre of Finance Minister Charles Sousa’s long-term economic report.
The 170-page update delivered Wednesday at Queen’s Park predicts sluggish economic growth for the next 20 years.
It cites an aging population and slower expansion of the workforce, which “may restrain future economic growth in the absence of significant productivity improvements.”
“The report indicates the need for consistency, predictability and steady hands,” said Sousa, who is to table a budget in May that could trigger a June election.
The economic outlook calls for an average of 2.1 per cent annual growth in real GDP through 2035.
Despite a growth prediction that barely exceeds inflation, Sousa maintained that the provincial budget will be balanced by 2017-18.
He is to deliver a revised deficit figure on Thursday that will be slightly lower than the $11.7 billion forecast.
The long-term outlook report states there is a need for policies to further reduce barriers faced by older workers in the labour market.
“These include facilitating flexible retirement plans such as gradual reduction of working hours while contributing to pension plans; flexible work schedules; opportunities for older workers to upgrade skills; supporting work/life balance; and promoting the health and well-being of workers in the workplace,” the report says.
In that vein, the Liberal government will continue with its plans to introduce a new Ontario pension plan given that the federal Conservative government has declined to enhance the Canada Pension Plan with bigger premiums and bigger payouts.
The number of senior citizens in Ontario is expected to double by 2035, which, according to the report, will put increase pressure on government spending, particularly in the area of health care.
“The provincial government spends on average three times more per capita on health care for seniors than the overall population,” the report states.
Sousa’s outlook came one day after the Progressive Conservatives revealed that his budget rollout plan had been leaked to them by a disgruntled public servant.
