Ontario has Canada’s largest economy, making up more than a third of the entire country’s gross domestic product (GDP). With a GDP in 2024 of $887.7 billion, this figure has grown by 1.9% in the last five years, but what are the different sectors driving this increase, and how are they evolving thanks to new technology and changing markets?
Commercial Banking and Insurance Continue to Contribute
The commercial banking sector in Ontario is worth $117.9 billion. The five biggest Canadian banks — Bank of Montreal, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Scotiabank, and Toronto-Dominion Bank — all have headquarters in the Financial District in Toronto. They’re all currently listed among the top 50 banks in the world, with the Royal Bank of Canada the highest-placed at number 24.
Scotiabank announced an $800 million investment in KeyCorp in the US last year, gaining a 4.9% stake in the bank. The company also sold its banking operations in Colombia, Panama, and Costa Rica to Davivienda and in return received a 20% stake in the Colombian bank. These moves give us a glimpse of how the Ontario banks are increasingly looking outwards for new investment opportunities, although they continue to focus their attention on the local market too.
The latest figures reveal that over 300,000 people are employed by these banks in Canada, with Toronto-Dominion Bank leaving the way with over 100,000 employees. Ontario also has a thriving insurance sector with Economical, Intact, Allstate, and TD Insurance among the companies with offices here.
Entertainment and Recreation Sector Adds Land-Based and Online Options
A thriving entertainment sector has traditionally contributed a chunk of revenue to the Ontario GDP. In 2022, this figure was $5.6 billion and over 165,000 people were employed in the diverse areas covered by this sector. Modest growth was predicted for the next few years, and upcoming projects like the redevelopment of Ontario Place should help this sector remain relevant. This former amusement park is being turned into a modern entertainment hub with immersive theaters, gaming lounges, and other elements.
Online entertainment has carved out a larger role in the province’s finances lately, with startups including EventMobi and Golden Triangle Angel Network helping to move the industry in new directions. The iGaming revenue report for Ontario covering the period April 2023 to March 2024 showed $2.4 billion in gambling revenue. This collection of casino games in Ontario includes a variety of themed slots including Coop Cash and Crystal Hall, showing how diverse the sector now is. With live games such as Crazy Pachinko and Balloon Live offering a live-streamed experience, the industry continues to grow and reach new markets by offering modern ways of playing together with the classics.
Manufacturing Adapts to Modern Technology
Manufacturing has traditionally delivered around 10% of the province’s GBP, providing 11.45% of the total in 2022. Current figures confirm that more than three-quarters of a million people in Ontario work in this sector, with an average wage of over $60,000. These people are employed by the more than 36,000 companies in the province that are dedicated to manufacturing, with the US Mexico, and Germany among the countries that most products are exported to.
An example of how modern techniques are showing us the way ahead in Ontario manufacturing can be found at the Multi-Scale Additive Manufacturing (MSAM) Lab. This is the biggest academic metal additive manufacturing space in the country, taking up 15,000 square feet and packed with over $25 million worth of the latest technology. MSAM’s impressive growth led to the Federal Economic Development Agency for Southern Ontario to confirm a $5 million investment in the facility earlier this year.
Looking at these different areas of the Ontario economy let us see that the province’s major companies continue to evolve and embrace new ways of working while remaining a huge part of the province’s economy year after year.
