Ontario

Ontario functions as Canada's economic center of gravity, containing 39% of national population and generating 38% of GDP. Toronto's financial district hosts the major banks; the manufacturing corridor from Windsor through the Golden Horseshoe produces vehicles, parts, machinery, and food products. This concentration creates the scale economies—specialized labor pools, supplier networks, market access—that reinforce Ontario's dominance over alternatives.

The automotive industry exemplifies path dependence. The Auto Pact (1965-2001) integrated Canadian and US production; subsequent free trade agreements maintained access while exposing manufacturers to global competition. The transition to electric vehicles creates both opportunity and risk: battery plants and EV assembly facilities bring new investment, but legacy internal combustion expertise may prove less transferable than hoped.

Hydroelectric power historically enabled manufacturing; nuclear plants now provide baseload. Ontario's elimination of coal power (completed 2014) reduced emissions but created electricity cost pressures that energy-intensive industries cite as competitive disadvantage. Immigration—Ontario receives nearly half of Canada's immigrants—provides population growth but strains housing and services. Whether the province can maintain economic leadership while managing housing affordability, transit infrastructure, and energy transition defines its 21st-century trajectory.