Ontario business confidence has doubled over the past year, rising from 13% to 26%, according to the Ontario Chamber of Commerce’s (OCC) 2025 Ontario Economic Report (OER). Despite this improvement, 48% of businesses remain doubtful about the province’s economic outlook, citing rising costs, trade uncertainty, and productivity challenges as key concerns.
The report, based on a survey of 1,714 business leaders from October to December 2024, reveals that affordability remains the most significant issue for businesses, with 78% identifying cost of living as a major concern. Inflation (62%), housing affordability (57%), and rising operational costs (51%) are also pressing issues. Business leaders say simplifying taxes (42%) and increasing affordable housing (32%) are top policy solutions to boost confidence.
A separate OCC survey conducted from February 4 to 10 highlights the impact of U.S. tariff threats, which cause business confidence to plummet to 15%, with 60% of leaders expressing a negative economic outlook. Daniel Tisch, OCC President and CEO, described the situation as fragile, stating, “The recent U.S. tariff threat is a call to action for both government and business to strengthen Ontario’s competitiveness and resilience.”
Despite concerns, nearly half of businesses (49%) are optimistic about their own growth prospects, citing strong consumer demand, innovation, and improved inflation management as key drivers. However, only 41% of businesses have formal mental health strategies, despite 71% recognizing employee well-being as crucial to success.
Business leaders are calling for action on multiple fronts, including workforce development, economic reconciliation, and climate change initiatives, but report needing support to seize these opportunities. Pat Dalzell of Bruce Power emphasized the importance of energy security, stating, “A reliable supply of made-in-Ontario electricity is a cornerstone of resilience and economic growth.”
The 2025 OER was produced with support from Hydro One, Bruce Power, Leger, and BMO. It offers sector-specific insights into Ontario’s post-pandemic recovery, highlighting both the resilience of the business community and the challenges ahead.
