The Ontario Broker - Volume 22, Issue 4 - 14

COVER STORY
INFLATION
Of course, discussions of the economy today are often
discussions about inflation. This has become the dominant
concern about the economy as inflation touches everything in
one way or another.
" Anytime demand rises and supply falls, the only conceivable
outcome is inflation, and now it's higher than it's been in three
decades, " said Kam.
" Many jurisdictions around the world are experiencing higher
than expected inflation driven by the strong economic recovery
from the pandemic, the impact on commodity markets related
to the war in the Ukraine and ongoing global supply-chain
disruptions, " said Bethlenfalvy. " Global economic conditions
remain highly uncertain, and there are a variety of factors beyond
the Province's control that may continue to impact the economic
and fiscal outlook. "
" People and households should be very careful with savings.
If we go into another recession, savings will be the key for most
households, " said Kam.
THE ROAD AHEAD
" The government has a plan for economic growth that supports
Ontario's fiscal recovery. Economic growth and job growth will
help provide revenues to support and protect critical public
services, " said Bethlenfalvy.
The Minister highlighted several items from the government's
plan for rebuilding Ontario's economy in the 2022 Budget, which
include:
* Releasing the province's first-ever Critical Minerals Strategy, a
five-year road map that will help strengthen Ontario's position
as a global leader in supplying critical minerals and Ontario's
supply chain for electric and hybrid vehicle manufacturing.
* The Ontario government is investing $5 million to create a
Critical Minerals Innovation Fund to support the mining industry,
academia, startups and research and development firms to
find innovative solutions for extraction and processing of
critical minerals.
* Releasing its Low-Carbon Hydrogen Strategy to accelerate the
development of the low-carbon hydrogen economy in the
province that will create jobs, attract investment and reduce
emissions.
* Ontario Power Generation is working to deploy Canada's first
grid-scale Small Modular Reactor (SMR) as early as 2028, which
would add clean, affordable and reliable energy to Ontario's
electricity grid, attract investment, and support good-paying
jobs in the nuclear sector for decades to come.
* Ontario is supporting investments to help make the province
a world-leading producer of clean low-emission steel to help
build the hybrid and electric vehicles of the future.
* As of early April 2022, Ontario has attracted nearly $11 billion in
new investments in transformative hybrid and electric vehicle
production and battery manufacturing in the province.
* The Ontario government is investing nearly $107 million over
the next three years to accelerate Ontario's economy through
critical technologies.
* Ontario is investing $10 million to establish a Food Security and
Supply Chain Fund to strengthen the province's food supply,
grow the workforce and to help sustain and expand the agrifood
sector.
We've made up much of the ground that was lost during the
pandemic. We're finding ways to adapt to the new realities of
the workforce. And government investment is targeting both
weak spots revealed by the pandemic and new areas that have
deep potential. Though the future may be uncertain, investing in
growth is the clearest path forward.
" DESPITE NUMEROUS
HEADWINDS, THE
ONTARIO LABOUR
MARKET REMAINS
STRONG, WITH
HIGH LEVELS OF
EMPLOYMENT AND A
LOW UNEMPLOYMENT
RATE. "
14
THE ONTARIO BROKER
The Ontario Broker - Volume 22, Issue 4

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