The economy of Ontario is diversified. Ontario is the largest economy in Canada, making up around 38% of Canadian GDP. Though manufacturing plays an important role in Ontario's economy responsible for 12.6% of Ontario's GDP, the service sector makes up the bulk, 77.9%, of the economy. Ontario's net debt-to-GDP ratio will rise to 40.7% in the year 2019–2020.
Ontario is the most populous province of Canada, with a population of approximately 14.19 million permanent residents in 2017. It is Canada's leading manufacturing province, accounting for 46% of the manufacturing GDP in 2017.
The CPI inflation of the province in 2018 was confirmed to 2.2%, with the unemployment rate at 5.6% as of January 2019. This unemployment rate is based on the 447,400 unemployed people in Ontario. As of 2018, the province's credit rating ranged from AA-negative (Moody's) to A+-stable (S&P).
In 2017, Ontario's main international exports were motor vehicles and parts (35.3%), mechanical equipment (10.1%), precious metals and stones (9.8%), electrical machinery (3.9%), and plastic products (3.6%). Ontario's main international imports were motor vehicles parts and accessories (22.6%), mechanical equipment (14.4%), electrical machinery (11.4%), plastic products (3.9%) and pharmaceutical products (3.4%).
Ontario was the leading state/province for attracting foreign direct investment (FDI) in North America in 2013, with $7.23bn. This accounted for more than one-tenth of all FDI in North America. It was also the 4th biggest state for outward FDI, recording $7.74bn.
As of 2017, Ontario is the second fastest-growing provincial economy in Canada, the first being Alberta.
History
The beginning of recorded history in Ontario is marked by the fur trade between Europeans and Native Americans, from which spawned various battles between various European and Native Americans peoples (the French, English, Iroquois and Hurons).
As a result of the Jay Treaty in 1793, the fur trade spread to the Northwest and the need for better transport facilities (in addition to the population) grew. 6000 bushels of wheat were bought at Kingston in 1799, and flour was sold in Montreal and Toronto in 1800. The American Revolution, French Revolution, and the Napoleonic Wars (in addition to subsequent immigration from the War of 1812) greatly stimulated the burgeoning timber trade in Ontario. The St. Lawrence became a monopoly route as other regions (like New York) lacked the waterways and rivers needed to transport timber. Between 1864 and 1866, 400 million board feet of British North American lumber passed through New York, and wood exports to the States from Canada were worth almost $7 million in 1866 to 1867. All the while, the demand for wheat and other agricultural products was growing, but was subjected to considerably greater competition from other regions, and the livestock and dairy industries, in addition to banks, which began to flourish.
In the early 20th century, Western Canada swelled with the influx of immigrant populations, and Ontario made the shift from being an export to domestic economy: the exported butter and cheese industry shifted into the milk industry for domestic consumption, winter dairying expanded, and the Ontario's apple industry declined in exports but increased consumption in Ontario and Western Canada.
In this time period, rail lines were constructed across Ontario and that the economy shifted toward greater industrialism and tapping into mineral resources—the mining, pulp and paper, and agriculture industries (in addition to hydro-electric power development) grew, and led to the growth of towns. Further industrial growth (which included those such as road construction, automobile factories, and the tourist trade) were encouraged by the war period.
Sectors
Approximately four-fifths of Ontario's GDP is composed of service sector industries. The remaining one fifth is the goods sector. More than half of the goods sector is manufacturing. One-third is the construction sector, and a tenth is the utility sector.
High tech
The province has a large technology sector, with one of North America's largest concentration of technology companies. Large Tech hubs exist in Ottawa, Toronto, Markham and Waterloo.
Agriculture
The number of Ontario residents living on farms has been steadily declining for decades. In 2016 Ontario's farm population was 160,415, or 1.2 percent of the Ontario population. By way of contrast, in 1931, 800,960 Ontarians lived on farms.