Ontario: Economic Overview

Ontario's rivers, including its share of the Niagara River, make it rich in hydroelectric energy. Since the privatization of Ontario Hydro which began in 1999, Ontario Power Generation runs 85% of electricity generated in the province, of which 41% is nuclear, 30% is hydroelectric and 29% is fossil fuel derived. OPG is not however responsible for the transmission of power, which is under the control of Hydro One. Despite its diverse range of power options, problems related to increasing consumption, lack of energy efficiency and aging nuclear reactors, Ontario has been forced in recent years to purchase power from its neighbours, Quebec and Michigan to supplement its power needs during peak consumption periods.

An abundance of natural resources, excellent transportation links to the American heartland and the inland Great Lakes making ocean access possible via ship containers, have all contributed to making manufacturing the principal industry, found mainly in the Golden Horseshoe region which is the largest industrialized area in Canada. Important products include motor vehicles, iron, steel, food, electrical appliances, machinery, chemicals, and paper.

Toronto, the capital of Ontario, is the centre of Canada's financial services and banking industry. Suburban cities in the Greater Toronto Area like Brampton, Mississauga and Vaughan are large product distribution centres, in addition to having manufacturing industries. The information technology sector is also important, particularly in Markham, Waterloo and Ottawa. Hamilton is the largest steel manufacturing city in Canada and Sarnia is a centre for petrochemical production. Construction employs at least 7% of the work force, but due to undocumented workers, the figure is likely over 10%. This sector has thrived over the last ten years due to steadily increasing new house and condominium construction combined with low mortgage rates and climbing prices, particularly in the Greater Toronto area. Mining and the forest products industry, notably pulp and paper, are vital to the economy of Northern Ontario. More than any other region, tourism contributes heavily to the economy of Central Ontario, peaking during the summer months owing to the abundance of fresh water recreation and wilderness found there in reasonable proximity to the major urban centres. At other times of the year, hunting, skiing and snowmobiling are among the out of high-season draws. This region has some of the most vibrant fall colour displays anywhere on the continent and tours directed at overseas visitors are organized to see them. Tourism also plays a key role in border cities with large casinos, among them Windsor and Niagara Falls which attract many US visitors.