Economic Review
As with most provinces, Ontario experienced a sharp economic slowdown in
2001, with real GDP rising 1.0 per cent, after posting a 5.3 per cent gain in
2000. Final domestic demand growth slowed, the result of weaker consumer
spending and a drop in business investment. Exports also fell, while business
undertook a large $2.9 billion inventory depletion.
On the income side, nominal GDP growth slowed from 5.9 per cent to 2.4 per
cent in 2001. Corporate profits were down for the year, after eight consecutive
annual gains.
On the industry side, output in the computer and electronics industry
tumbled. Manufacturing output also fell, especially in the auto sector. The
events of September 11, 2001 also curtailed the growth in other industries,
particularly the transportation sector.
Prices, measured by the GDP price deflator, rose 1.4 per cent in 2001, up
from the 0.6 per cent advance in 2000.
Technology
Following September 11, 2001, many organizations began to seriously reassess
their security initiatives to determine areas of improvement. Security has
always been important to the OFA and network security was the top priority in
2001.
Some of the OFA key security initiatives included enhancing security
monitoring systems, implementing effective perimeter-type defenses and keeping
skilled resources. Obtaining security certification was another key initiative. TruSecure, a firm that specializes in security assessments, was hired to
evaluate the security of the OFA network perimeter and internal technology
infrastructure. The OFA subsequently obtained the firm certification that its
security controls, policies and procedures met very stringent requirements.
An influx of computer viruses also occurred in 2001. Viruses have become more
sophisticated even as anti-virus defenses continue to advance. The OFA has
effectively limited its exposure to these computer threats by utilizing various
monitoring and filtering tools as well as ensuring security patches are up to
date.
In an effort to expand the use of technology as a means of efficiently
communicating with bond investors, the OFA sponsored the Province first webcast on February 27, 2002, presenting the Province Third Quarter Finances.
The OFA received positive feedback from the financial community on the
initiative, and as a result, future webcasts are planned for fiscal 2002-03.
In 2002-03, the OFA will continue to monitor the information technology and
financial industries to ensure that its systems are capable of maintaining their
existing high level of service in a cost-effective and secure manner.
