The latest prediction by the Conference Board of Canada has forecasted a 2.6% rise in the GTA’s gross domestic product the current year, but the forecasted data by the Statistics Canada stated that this will not or have little affect on the buying power of Torontonians.
The reasons for this is that the average earnings a week in Ontario bettered by only 1.1% the pervious year. This is a worrisome development in the stable growth in prices of home which the area has been going through from some time now.
Nik Nanos, the Nanos Research executive said, “There’s a collision between the psychology of consumer confidence and the reality of the economic numbers. When people don’t feel that real wages are significantly increasing, when they’re unsure about their level of job security, it creates a psychological chill on consumer confidence.”
This kickoff doesn’t look like that it will slow any time soon, because the Greater Toronto Area’s hot market of housing has rapidly become an important driver of the area’s income.
The provincial GDP currently stands at 13.2 percent when it comes to real estate, which is more than the manufacturing sector which represents 12.1 percent.
This decline in the manufacturing sector has been a subject of earlier recession, with greater impact of contract work and part-time jobs significantly affecting the new generation of workers in this region.
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