Friday, January 12, 2007

Ontario posts negative growth for first time since SARS

Yet Toronto papers seem nonplussed

Last night I speculated that perhaps the reason companies aren’t donating to the McGuinty Fiberals is because Premier Pinocchio and his string-pullers are letting Ontario's economy go down the toilet. Today I see that late-day emission of bad economic news pre-dated my comments by mere hours:

Ontario slips into negative growth in third quarter; GDP minus 0.1 per cent

Ontario PC Leader John Tory was on the ball and got a release out at 7:20 p.m. So Canadian Press moved this story in plenty of time for the papers to put it in Friday’s edition. The Toronto Star had it on their website last night, but I saw nothing in today’s print edition, nor in the Sun, Globe nor Post.

This is Ontario’s first quarter of negative GDP growth since the SARS-induced recession of 2003. Before that, the last negative-growth quarters were in 1992. It’s certainly the first negative growth on McGuinty’s watch.

A history of Ontario recessions (defined as two or more consecutive quarters of negative growth) is at Table 5 in the 2004 Ontario Economic Outlook and Fiscal Review.

4 comments:

Joanne (True Blue) said...

You only have to look at all the lay-offs and plant closures in Southern Ontario to know that things are not going well at all.

Dalton's going to be on the hot-seat come election time. It will be hard for him to buy his way out of this one.

Anonymous said...

I guess Dalt the Dolt and the Midget Finance Minister (he is back from his RCMP investigation isn't he?) may now realize that raising taxes by $9 billion, sorry, sorry, adding a $9 billion health care premium, will in fact blow a macroeconomic hole in the economy.

wilson61 said...

Well, I guess they won't be needing all those extra daycare spaces after all.

That was nasty, but I get riled anytime a Liberal leader comes to town.

The NEP2 Dion is proposing to impose on Alberta will hit Ontario hard too.

Is it time to parade out some economists/analysts with the doom and gloom NEP scenerio on the economy.?
I guess we'll have to see if Buzz gives Dion a photo-op jacket (and a hug) first.

When Don Newman (I'm a fan) starts interviewing environmentalist, you know it is time for a good dose of reality,
(after 3 months of enviro insanity).

nomdeblog said...

The disinformation game of the McGuinty and Miller continues as they blame the US for shootings in Toronto. On the other hand Bush’s tax cuts saved Ontario but they gave him no credit, now they blame the US because Hyundai is out competing Buzz’s $80,000 a year work force.

Queens Park is overtaxing both workers and corporate earnings so that McGuinty can have enough scarce funds to buy back private sector MRI equipment. Thus he can keep us untouched by the invisible hand of capitalism in Health Care that would otherwise improve wait times and bring much needed innovation to this sector.

What will become interesting is how McGuinty and Tory each try to out score the other on the fiscal imbalance issues. Both are tired of shipping money to Quebec for its squandering, socialistic ways. If unemployment in Ontario creeps up, we could be witnessing the final days of Liberal Ontario’s turning a blind eye to mismanagement in Quebec, we have our own problems to deal with.