Jennifer Paterson
Business confidence in the Ontario economy is at a five-year low, according to a new report.
The Ontario Chamber of Commerce (OCC), in partnership with the Mowat Centre, has published its latest iteration of its Emerging Stronger 2016 report, which features the annual Ontario Business Confidence Index.
The index shows that only 30% of Ontario businesses are confident in the province’s economy, compared to 47% in 2012. It also shows that 62% of businesses are confident in their own organization’s outlook, down from a high of 74% in 2014.
Less than a third (30%) of businesses believe the Ontario economy is going in the right direction, compared to 42% in 2012. Just under half (46%) of businesses plan to expand in the next five years, down 14 points from 2013.
“Ontario businesses are looking for stability and economic certainty,” said Allan O’Dette, president and CEO of the OCC. “Emerging Stronger offers a detailed roadmap for how government can work with the business sector to achieve their shared goals.
“Uncertainty throughout the global economy and, specifically in the resources industry, is further compounding concerns in the private sector, and it is important that public policy address the concerns of the business community.”
The detailed policy recommendations put forward in the report are focused on increasing economic stability, supporting investment and fostering business growth across the province.
According to the report, in order to achieve this, some of the key areas that need to be addressed are:
- Fostering a culture of innovation and smart risk-taking in order to become a productivity leader;
- Building a 21st century workforce;
- Restoring fiscal balance by improving the way government works;
- Taking advantage of new opportunities in the global economy;
- And strategically investing in the province’s competitive advantages.
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“There are a number of steps that government and business can take to stimulate economic activity and
promote stability in the province,” said O’Dette. “It is important that government work with business to mitigate some of the unintended economic impacts of major public policy changes.”