Ontario government releases fall economic statement

The Ontario government released its fall economic statement on Wednesday, and the province is warning of tough times ahead.

But critics say there’s nothing in the statement to help people get through those tough times.

According the Fall Economic Statement, here’s how the economy stands.

The government’s deficit this year is expected to be 5.6 billion dollars, 4.3 billion higher than expected.

The government says “considerable uncertainty remains regarding the future path of inflation …(with) downside risks”, but says it will balance the budget by 2025.

On economic growth, the Gross Domestic Product this year, 2023, will be only 1.1 per cent.

Next year, 2024, it could fall to just 0.5 per cent, a flat economy.

Other figures show home prices are expected to fall 4.6 per cent this year, and only about 90,000 housing starts this year, short of the goal.

The government is now suggesting it might not hit its target of 1.5 million new homes.

“It’s not about are we gonna build 1.4, 1.6, 1.5. What the issue is municipally, federally, provincially, we’ve gotta work together to try to do the best we can,” Finance Minister, Peter Bethlenfalvy said.

The government’s Fall Economic Statement introduced new measures, like an Ontario Infrastructure Bank, with $3 billion in government money, and channeling private investments into things like long-term care homes, affordable housing and municipal infrastructure.

But some people are demanding the province start building homes.

“I don’t think the government is going to take over building housing, we’re going to set the conditions for getting housing built,” Bethlenfalvy said.

Other measures include a Target Pension Framework, allowing workers in areas like skilled trades to take pensions with them from employer to employer.

“This government missed the moment to address the housing affordability crisis for getting worse,” NDP MPP Catherine Fife said.

The opposition says the economic statement does not provide the help people need.

“So people are hurting, they’re struggling to pay their bills, there’s pain out there, and the government’s solution to their struggles is a bank, a bank, people need help today,” Interim Liberal Leader John Fraser said.

And with a government mired in scandal over land development, critics say they’re afraid a new bank could just be an opportunity for its friends and families to make money.