Ontario’s economy is growing at a healthy clip, outpacing all G7 nations, according to the province’s second quarterly public accounts.From April to June, gross domestic product increased 0.8 per cent, which followed a 1 per cent increase in the first quarter of 2017.“Ontario’s economy continues to grow, with real GDP growth outpacing the average of all G7 countries in the second quarter of 2017,” Finance Minister Charles Sousa said Monday.Sousa noted the province’s unemployment rate last month was 5.6 per cent, its lowest level this century.“This evidence tells us that our plan is working, and we are making progress,” said Sousa.Ontarians go to the polls on June 7, 2018 and most public-opinion surveys show the governing Liberals trail the Progressive Conservatives.Growth in the second quarter was driven by “solid consumer spending.”“Ontario’s household consumption spending increased 1.2 per cent, the strongest quarterly growth since 2010,” according to the government’s public accounts.Consumer spending on semi-durables advanced 5.3 per cent, led by clothing and footwear. Spending on non-durables (plus 2.6 per cent), durables (plus 0.3 per cent) and services (plus 0.4 per cent) also increased.But business investment dropped by 2.6 per cent, a disappointing result after a 5.8 per cent gain between January and March.“The decline was due to lower residential construction investment (minus 6.4 per cent), reflecting a slowdown in home resale activity,” the report noted.This latest data predates the introduction of the government’s foreign buyers’ tax, which was designed to cool down the Greater Toronto Area’s overheated real estate market.
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