A recent forecast made by the Conference Board of Canada predicted a 2.6% rise in the Greater Toronto Area’s gross domestic product this year, but recent findings from Statistics Canada proved that this will appear to have negligible unpleasant effects on the purchasing power of inhabitants of Toronto.
This is a result of the average earnings per week in the city of Ontario ameliorated by just 1.1% last year, a troubling development in light constant increase in home prices that the province has been witnessing in the past few quarters.
“There is a concussion between the psychology of consumer confidence trustworthiness and reality of the economic number,” Banks Research executive chair Nik Nanos said to CBC News. “When people don’t feel that real wages are rising significantly, when they are not sure about the level of job security, it establishes a psychological coldness on consumer trustworthiness.”
This movement does not seem to cool down any time soon, as the region’s inflamed home market has actually become an important driver of Ontario’s income. Real estate at the moment represents 13.2% of the provincial GDP a larger amount than the manufacturing segment’s 12.1%
Importantly, the decrease in manufacturing significance came as a result of the recession of 2008-2009, and part-time or contract work is now an economic reality to the workers of the new generation in the city of Ontario.