page_title: Economy of Toronto
section_title: History
hierarchical_section_title: Economy of Toronto / History
caption_attribution_description: The Bank of Montreal's First Canadian Place, a 72-storey office tower under construction
context_page_description: The economy of Toronto is the largest contributor to the Canadian economy, at 20% of national GDP, and an important economic hub of the world. Toronto is a commercial, distribution, financial and industrial centre. It is the banking and stock exchange centre of Canada, and is the country's primary wholesale and distribution point. Ontario's wealth of raw materials and hydroelectric power have made Toronto a primary centre of industry. The metropolitan area of Greater Toronto produces more than half of Canada's manufactured goods. The economy of Toronto has had a GDP growth rate of 2.4 percent annually since 2009, outpacing the national average. Toronto's population was 2.93 million people as of 2017, while the population of the Toronto census metropolitan area was 5.92 million as recorded in the 2016 Canadian Census.
context_section_description: Toronto is located on a crossroads dating back to aboriginal times with excellent harbours with many rivers. The economy grew based on the settlement of Ontario. During the late 19th century, Toronto became the centre of railways and the supplier of goods to Ontario. Its status as a political centre gave it some stability during periods of economic uncertainty. Toronto saw a large boom after World War II when immigrants, especially from war-decimated Europe, chose the area to settle. Manufacturing, notably automotive manufacturing, grew to supply the growth in population. 
  Toronto grew at a faster rate than the other great centre of Canada at the time, Montreal, and surpassed it in the 1970s. Shipping by water was instrumental in Toronto's early growth, but this has diminished to the point where the harbour is lightly used by industry. The area around Pearson Airport, the country's busiest airport, has become one of the largest industrial areas.
  Further growth in the Toronto area is often attributed to the rise of Quebec separatism, though the extent of its influence is still contested by some, who argue that its effect was exaggerated by the English media. During the 1970s, the Quebec Liberal Party and the Parti Québécois enacted a series of French-language laws, which were perceived as unfavourable towards English-language businesses (especially multinational corporations, whose markets extended far beyond Quebec's borders) and English-speaking Montrealers. Some of the former (including the Bank of Montreal) and a number of the latter subsequently relocated to Toronto, where French proficiency is not a necessity for business or employment.
  Much of Toronto's manufacturing sector has moved to outlying suburbs in the Greater Toronto Area, seeking lower land costs and land for expansion. This is not a new trend; it has been present for over 100 years. Early suburbs, such as West Toronto, developed for industry and were later engulfed by the expansion of the City of Toronto. West Toronto once had a large stockyard, which has moved well north of the city. Much of the older industrial land has been converted into new residential neighbourhoods, supporting loft and condominium development and the industrial concerns have moved further away. The sector remains a large employer, employing 25,000 directly.
  Toronto itself has diversified into service-based industries. It is the centre of the Anglophone media industry in Canada, the advertising industry, the entertainment industry, the fashion industry, the communication and technology industry, the pharmaceutical industry, the retail industry and the centre of the financial industry in Canada. The area is a large site of computer software development. Toronto has also become the site of many headquarters of companies, which have their primary activities elsewhere, such as mining and real estate, which need to stay close to the centre of finance. As Toronto developed, it has also developed its tourism industry, developing attractions such as the Toronto Eaton Centre, Rogers Centre, Scotiabank Arena, Roy Thomson Hall, Art Gallery of Ontario, Royal Ontario Museum, Ripley's Aquarium and most notably the CN Tower, though it is also a communications tower.
caption: Construction of First Canadian Place, the operational headquarters of the Bank of Montreal, in 1975. The 1970s saw several Canadian financial institutions move to Toronto.
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