Just how good was business growth in Canada’s economic heartland last year? Quite good, according to the results of the Ontario Chamber of Commerce’s annual Ontario Economic Report (OER).
Businesses reported higher growth in 2022 than over the previous two years, in line with their sustained internal confidence. Forty-five percent of organizations say they grew over the past year, and 53% expect growth in 2023.
“Improved growth shows businesses are benefitting from a rebound in consumer demand and spending from earlier stages of the COVID-19 pandemic, even as low confidence in the broader economy suggests an awareness of the headwinds they are up against,” the OER states.
Larger businesses are more likely to have grown than smaller ones (61% vs. 44%). Small businesses have less room on their balance sheets to absorb additional costs brought on by inflation, rising interest rates, and the phaseout of temporary government support programs.