Ontario’s gross domestic product fell point three per cent in the second quarter of the year.
Finance minister Dwight Duncan answered questions about the economic statement at Queen’s Park this morning. He blames the GDP drop on the weak u-s economy, and the Tsunami in Japan which caused such an auto parts shortage – in turn, slowing down production here.
Duncan says Liberal tax policies like the HST helped in some areas like business investment in equipment.
People also bought more furniture, appliances, and other durable goods. New home construction and renovations were another winner.
Decreases came from the manufacturing sector – most dramatically, auto production.
Video: Lisa Hepfner reports:
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