Ontario economy to grow only 1.8% in 2008: bank report
Last Updated: Friday, October 12, 2007 | 1:33 PM ET
The Canadian Press
Ontario's economy is expected to grow by just 1.8 per cent in 2008 and not rebound until 2009, according to the latest RBC Financial Group forecast.
The Royal Bank report, released Friday, says the surging dollar, weaker U.S. growth and China's rising share of the U.S. import market will mean a difficult 2008 for Ontario manufacturers.
RBC also says the province's second-biggest industry, forestry, faces at least another year of weak commodity prices and escalating costs.
Bank vice-president and chief economist Craig Wright says currency-induced challenges have greatly affected Ontario's economy.
But he says the main concern for Ontario's long-term competitiveness continues to be a "crushing corporate tax burden."
If Ontario were a country, Wright said, it would have the second-highest tax burden on new investments compared to most major economies.
