Business confidence at new low, Ontario Chamber of Commerce survey says

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Only 16 per cent positive about 2023, amid inflation, labour shortages, recession worries - and concerns over health care

Just 16 per cent of Ontario businesses say have confidence in the year ahead, according to a new survey that cites their concerns about not just inflation, labour shortages and a possible recession, but also the state of the province’s health care system.

The statistics are part of the OCC’s annual economic report, which is set for release Tuesday. It predicts a slowdown, which began even before the Bank of Canada began raising interest rates last year, and says Ontario’s gross domestic product will shrink by 0.4 per cent in 2023. Unemployment will also rise, it says, citing Bank of Montreal numbers. And housing starts – a key goal for Ontario’s government – will sink 22 per cent.

The provincial government recently announced a plan to use more private clinics for publicly funded surgeries, and the premiers and the Prime Minister are meeting Tuesday to hash out a new health care funding deal. The Ontario government has been briefed on the report, and Economic Development Minister Vic Fedeli is expected to provide remarks remotely at its release. In an e-mailed statement, Mr. Fedeli said the government will continue to listen to business owners.According to the survey, small businesses, more vulnerable to rising costs, were less likely to feel optimistic about 2023 than large ones, with the OCC citing the withdrawal of government COVID-19 supports as a key factor.

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