Newspaper article The Canadian Press

Ontario's Economy Rebounds Slightly in Third Quarter to Grow 0.7 per Cent: Ontario Economy Rebounds Slightly in Q3

Newspaper article The Canadian Press

Ontario's Economy Rebounds Slightly in Third Quarter to Grow 0.7 per Cent: Ontario Economy Rebounds Slightly in Q3

Article excerpt

TORONTO - Ontario's economy showed a "modest" rebound in the third quarter of 2011 after a slight decline in the previous period, Finance Minister Dwight Duncan said Monday.

Statistics released by the finance ministry showed Ontario's real Gross Domestic Product rose 0.7 per cent between July and September after falling 0.2 per cent in the second quarter last year.

"It's tracking at 2.7 per cent annualized, and that's pretty consistent with Canada for the same quarter," Duncan told reporters.

"I don't anticipate that we'll go into negative growth again, certainly in the fourth quarter, but you never know."

Manufacturing was the leading contributor to overall growth with a 2.2 per cent increase in output, led by transportation equipment with a 6.4 per cent hike in auto production.

That was a major turnaround after a 6.6 per cent decline in auto production in the second quarter of 2011 because of supply problems caused by the tsunami in Japan.

The third-quarter figures show Ontario consumers continued to buy more auto parts, furniture, appliances, drugs, alcohol and other personal goods, but business investment was flat.

The New Democrats want to scrap corporate tax cuts, complaining that companies are using tax breaks to fatten their bank accounts, not to re-invest and create jobs.

"If you're going to give those kind of tax cuts, tax breaks, then we expect something in return, we expect jobs to be created," said NDP finance critic Michael Prue.

"We expect industry to reinvest, not just simply line their pockets, and the tax cuts have not done anything except line pockets."

Duncan pointed out a range of tax credits and reductions the Liberal government has implemented for businesses, and urged them to start investing again.

"We now have the most competitive tax system in North America and I expect Ontario businesses to invest in Ontario and to create jobs," he said. …

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