FOCUS ON ONTARIO: CANADA’S LEADING ECONOMIC POWER

In 2025, Ontario confirms its position as Canada’s leading economic powerhouse. With a dynamic population, a highly skilled workforce, a diversified industrial base, and a business-friendly environment, the province drives growth and innovation. Representing over 38% of Canada’s GDP, Ontario is a top destination for foreign direct investment (FDI), business expansion, and international companies seeking opportunities in the Canadian market.

Ontario 2025: A Growing Population and a Logistics Hub at the Heart of Canada’s Economy

Ontario now has approximately 16 million residents in 2025, strengthening its position as the most populous province in Canada. This sustained population growth is driven largely by immigration, which accounts for nearly 97% of the increase. This demographic momentum fuels the province’s role as a powerful economic engine and strategic logistics hub within Canada.

Ontario enjoys an exceptional strategic geographic position that makes it a vital hub for logistics and trade. With privileged access through its Great Lakes ports and the St. Lawrence Seaway, the province enables efficient movement of goods to the rest of Canada, the Atlantic Ocean, and the United States.

In addition, Ontario’s extensive highway and rail networks provide world-class connectivity, ensuring fast access to both domestic and international markets. Every day, more than CAD 400 million in goods cross the Ambassador Bridge, linking Windsor (Ontario) with Detroit (Michigan). From Toronto, companies can reach over 194 million consumers within a single day’s drive, reinforcing Ontario’s role as a key hub for transportation, distribution, and North American trade.

Ottawa: Canada’s Federal Capital and a Pillar of Public Procurement

Ottawa, the federal capital of Canada, plays a strategic role in Ontario’s economy, beyond the financial and economic weight of Toronto. As the seat of the Government of Canada, the city is a nerve center for federal procurement, representing several billion dollars in public spending each year.

Privileged Access to Federal Procurement Opportunities

Federal procurement in Ottawa includes major contracts for the supply of goods, services, and construction projects. Companies established in the region benefit from unique opportunities, particularly in the fields of defense, national security, government technologies, and institutional infrastructure.

Research, Innovation, and Strategic Partnerships

The concentration of federal institutions also stimulates research and development (R&D) and fosters public-private partnerships. Ottawa is home to leading research centers and innovation hubs specializing in cybersecurity, government information systems, and defense technologies, strengthening its position as a premier technological and scientific ecosystem.

A Unique Economic Driver

The Government of Canada is one of the country’s largest buyers of goods and services, investing heavily in construction projects, technological equipment, and specialized services. This reality gives Ottawa a unique economic role: a key hub for business opportunities tied to federal institutional markets.

Ontario’s Human Capital and Economic Strength: Canada’s Growth Engine

Ontario stands out with a highly skilled and dynamic workforce, a true driver of both the provincial and national economy. With over 5 million qualified workers in key sectors, the province boasts a world-class talent pool. The Greater Toronto Area (GTA) is particularly notable, ranking as the third-largest tech hub in North America, further consolidating Ontario’s position as a leading center for innovation and economic growth.

Ontario boasts an exceptional pool of human capital that fuels its economic growth. The province is home to:

• 40+ internationally recognized universities and colleges, including 3 world-class universities

• One of the highest university graduation rates in the world, with over 250,000 graduates each year

• A multilingual and multicultural workforce

• Internationally renowned research and development centers

  
  

This unique mix of talent, education, and a dynamic tech ecosystem makes Ontario a prime destination for businesses seeking innovation and growth in high-value sectors.

Ontario’s main economic indicators highlight the vitality of its economy. As Canada’s largest economic powerhouse, Ontario recorded an estimated nominal GDP of CAD 1.15 trillion in 2024, accounting for nearly 37–40% of the national GDP.

The province is also home to about 15.8 million residents, representing 39% of Canada’s total population, further confirming its position as both a demographic and economic engine for the country.

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Foreign Investment and Exports in Ontario: Leadership and Growth

Ontario is a top destination for foreign direct investment (FDI), driven by:

• A business-friendly environment

• Competitive tax incentives

• Political and legal stability

• Privileged access to the North American market through CUSMA (Canada–United States–Mexico Agreement)

These FDI projects generated a record cumulative value of more than CAD 141.9 billion in 2023–2024, confirming Ontario’s role as a leader in international investment and trade growth.

Ontario continues to attract record-breaking foreign direct investment (FDI), with global industry leaders choosing the province for large-scale projects:

Volkswagen (Germany): In March 2023, Volkswagen announced a CAD 7 billion investment to build a battery plant in St. Thomas, Ontario — one of the largest European industrial projects in North America. By August 2025, PowerCo Canada (a Volkswagen subsidiary) awarded two major contracts for the plant’s construction.

AstraZeneca (United Kingdom): On January 22, 2025, AstraZeneca confirmed a CAD 820 million (approx. £460 million) investment to expand its R&D center in Toronto (Mississauga). The project will create over 700 highly skilled jobs in life sciences, support 210+ global clinical trials (notably in oncology and rare diseases), and benefit from support by the Ontario government.

Alstom (France): In 2025, Toronto’s GO Expansion project entered its active construction and modernization phase. The ONxpress consortium, including Alstom, finalized project design in 2024 and began major works. This CAD 13.5 billion program will transform regional rail service through 2030.

Ford Motor Company (United States): Between 2024–2025, Ford announced a total CAD 3 billion investment to boost production of its F-Series trucks at the Oakville, Ontario complex. The project aims to increase annual production capacity by 100,000 units starting in 2026, creating around 1,800 direct jobs.

Honda Motor Co., Ltd. (Japan): In April 2024, Honda revealed plans for a CAD 15 billion investment to build four facilities in Ontario dedicated to electric vehicles (EVs) and batteries. Once completed, the project will enable an annual production capacity of 240,000 EVs by 2028.

Exports: An Economy Driven by International Trade

Ontario’s exports account for a significant share of Canada’s international trade, showcasing the province’s strong global orientation. Key export sectors include:

• Automobiles and auto parts

• Manufactured goods

• Natural resources

• Financial and technology services

Ontario’s diversified export base reinforces its position as a global trading hub, connecting Canadian innovation, resources, and industry with markets around the world.

In 2024, Ontario’s international merchandise exports reached approximately CAD 259.1 billion, a 3.0% increase compared to 2023 (CAD 251.6 billion). These exports represented nearly 41.8% of Canada’s total merchandise trade, reaffirming Ontario’s position as the driving force of Canadian international trade.

The United States remains by far Ontario’s largest export market, accounting for about 80% of the province’s total exports.

France & Ontario: Untapped Trade Potential

In 2024, France ranked as Canada’s 10th largest trading partner, and the 3rd largest among European countries, behind Germany and Italy but ahead of Belgium and Spain.

However, despite Ontario’s economic dynamism, France’s trade presence in the province remains limited compared to other European powers such as Germany, the United Kingdom, and the Netherlands. In 2023, France accounted for only 0.3% of Ontario’s exports and 0.7% of its imports, while Germany represented 0.9% of exports and 2.6% of imports, and the Netherlands 0.4% of exports. These countries have positioned themselves as major economic partners for Ontario, both in terms of foreign direct investment (FDI) and trade volumes.

By contrast, France remains underrepresented, highlighting a largely untapped potential. Across Canadian provinces, Québec leads as the top destination for French exports (47%), followed by Ontario (35%). This presents strategic opportunities for French companies seeking to enter the Canadian market, build local partnerships, and strengthen their presence in Ontario, Canada’s economic powerhouse.

Ontario’s Economic Structure: Diversification and Growth Sectors

Ontario’s economy is defined by its remarkable sectoral diversification and a strong orientation toward innovation, ensuring resilience and sustainable growth.

• Financial Services and Insurance :

  Toronto is Canada’s leading financial hub, home to the headquarters of the country’s largest banks — the “Big Five”: Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD Bank Group), Bank of Nova Scotia (Scotiabank), Bank of Montreal (BMO Financial Group), Canadian Imperial Bank of Commerce (CIBC). It also hosts major insurance companies such as Manulife Financial (HQ Toronto), Sun Life Financial, Intact Financial Corporation, and Fairfax Financial Holdings. The Toronto region employs about 210,000 people in financial services, representing nearly three-quarters of Ontario’s financial workforce. This sector plays a central role in the Canadian financial system and contributes significantly to Ontario’s GDP.

• Manufacturing Industry :

  Ontario remains the manufacturing powerhouse of Canada, particularly in automotive, aerospace, and consumer goods. Notable companies include: Magna International, Linamar Corporation, General Motors Canada, Ford Motor Company of Canada, Stellantis Canada, Toyota Motor Manufacturing Canada, Bombardier, and Pratt & Whitney Canada.

• Information and Communications Technology (ICT) :

  Backed by a dynamic ecosystem around Toronto and Waterloo, Ontario’s tech sector is experiencing rapid growth. Toronto is recognized as a major North American tech hub, hosting a dense network of startups, scaleups, and established firms in ICT, cybersecurity, AI, and fintech. Toronto–Waterloo Corridor Highlights: Shopify (large office in Toronto), OpenText (HQ Waterloo – global leader in content management), BlackBerry (Waterloo – cybersecurity & embedded software), Communitech (incubator, Waterloo), Lightspeed (Toronto presence, HQ in Montreal), Wealthsimple (fintech, Toronto), Ada Support (AI conversational platform, Toronto). Global tech giants further strengthen Ontario’s ecosystem, including Google Canada (Toronto, Waterloo), Microsoft Canada (Toronto), and IBM Canada (Markham).

• Mining and Natural Resources :

  Ontario is one of Canada’s top mining producers, with a mineral production value of CAD 15.7 billion in 2023, representing 26% of national output. The sector employs over 77,000 people, particularly in Northern Ontario, and positions the province as a global leader in mining. Ontario is a top producer of platinum group metals, nickel, cobalt, gold, copper, zinc, and silver. The Toronto Stock Exchange (TSX) is the world’s leading exchange for mining companies, reinforcing Ontario’s global role in resource financing. Key players include: Vale Canada (nickel, Sudbury), Glencore Canada (zinc, copper, Sudbury), Agnico Eagle Mines Limited (gold, HQ Toronto), Barrick Gold Corporation (HQ Toronto, one of the world’s largest gold producers), Kinross Gold Corporation (Toronto), Franco-Nevada Corporation (Toronto – mining royalties), and First Quantum Minerals (Toronto).

  Ontario also has a significant forestry industry, supported by government programs promoting sustainability and competitiveness.

NB: “Natural Resources” includes agriculture, forestry, fishing, as well as mining and other natural resource extraction.

Other strong sectors in this province include :

• Agriculture and Agri-Food:

  Although representing a smaller share of GDP (around 3% of Ontario’s GDP), this sector remains important for the rural economy and Canadian agricultural exports, with sustained growth prospects. Some major names: Maple Leaf Foods (food processing, Toronto), Cargill Canada (agri-food processing), Grain Farmers of Ontario (largest grain producers’ organization in Canada), Gay Lea Foods (dairy cooperative), Burnbrae Farms (eggs, major producer in Ontario).

• Life Sciences and Biotechnology:

  Rapidly expanding, supported by significant R&D investments and a dynamic ecosystem in medical device manufacturing, pharmaceuticals, and bioproduction. Some names: Apotex Inc. (generic pharmaceuticals, Toronto), Sanofi Canada (vaccines and pharmaceuticals, Toronto), Hoffmann-La Roche Ltd. (Mississauga), Bayer Canada (Mississauga), Gilead Sciences Canada (Mississauga).

• Public Sector and Social Services:

  A stable and major employer, encompassing health (with strong investments, steady growth, and significant needs in human and material resources, making it a core strength of the provincial economy), education, and government services.

• Construction, Real Estate, and Infrastructure:

  With an anticipated need for around 1.5 million new homes by 2031 and an infrastructure investment plan of CAD 150 billion over 10 years, these sectors offer major opportunities. Large-scale projects are also underway in Ontario. For more details, we invite you to read our dedicated article on the engineering sector and major infrastructure projects in Canada.

Challenges and Opportunities: Why Ontario is the Go-To Destination in 2025

In 2025, Ontario positions itself as the leading destination for foreign companies seeking to establish and expand in Canada. The province offers a stable and dynamic economic environment, supported by a favorable regulatory framework and strategic access to North American markets.

Challenges for Foreign Businesses in Canada

International investors face several challenges, including:

• Adapting to geopolitical uncertainties and trade tensions, particularly recent tariff measures between Canada and the United States, requiring supply chain reconfiguration.

  
  

• Administrative complexity and sectoral regulation, calling for better regulatory navigation, although the Ontario government is actively reducing internal trade barriers to ease business operations.

  
  

• Shortages of skilled labor in specialized sectors, making it essential to invest in continuous training, collaborate with local institutions, and leverage immigration programs tailored to economic needs.

  
  

• Pressure on housing and infrastructure, which can affect the ability to attract and retain talent.

  
  

Major Opportunities in Ontario for Foreign Companies

Despite these challenges, Ontario offers decisive advantages that make it a top choice:

• A powerful and diversified economy

  
  

• A world-class logistics and infrastructure network

  
  

• Strong government support for innovation and foreign investment, with programs aimed at fostering industrial reshoring, market diversification, and technological modernization.

  
  

• Ontario recently announced measures to exclude American companies from its provincial procurement processes. This decision creates new opportunities for European and international companies seeking to enter the Ontario market.

  
  

• A thriving tech and innovation ecosystem: Toronto and Waterloo rank among the top tech hubs in North America, supported by a skilled workforce and strong R&D investment.

  
  

• Competitive tax policies, with an attractive corporate tax rate (around 25%) and targeted tax credits for research, development, and innovation.

  
  

• Facilitated access to international markets, through Canada’s trade agreements and Ontario’s trade offices in more than 14 international locations, including Asia, Europe, and Latin America.

  
  

• Sectoral diversification driven by key industries such as advanced manufacturing, life sciences, clean technologies, mining, and sustainable construction.

  
  

These assets make Ontario a strategic platform for foreign companies aiming to successfully expand into Canadian and North American markets.

Ontario continues to stand out as Canada’s leading economic powerhouse, thanks to its dynamic human capital, flourishing innovation ecosystem, and strategic infrastructure.

Adexia in Toronto: A New Address to Serve You Better

We are pleased to announce that our office has recently moved to the heart of Toronto, enabling us to be closer to our partners and better support our clients with their projects in this major economic hub.

📍 77 Bloor Street W, Suite 600 – Toronto, ON, M5S 1M2

This relocation reflects our commitment to being closer to Ontario’s economic players, in a province that stands as a strategic hub for trade, innovation, and investment. From our Toronto office, we support French and international companies in their projects related to market entry, growth, and partnerships in Ontario.

Our local presence allows us to strengthen our role as a facilitator, expand our network, and provide tailored support to companies seeking to seize the many opportunities the province has to offer.

Feel free to contact us today to learn how we can help you capture Ontario’s opportunities and accelerate your growth in Canada.

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