A lower dollar, the falling price of oil and faster US growth are expected to help Ontario.
Manufacturing in Southern Ontario is expected to pick-up as a result of all three factors leading to improved economies.
But for Northern Ontario, lower metal prices are expected to weigh down growth because of the north’s dependency on mining.
One positive area for the north is a pick-up in wood demand as housing starts increase south of the border.
The outlook is the result of an analysis by the financial firm Central 1.