The low Canadian dollar is leading to high fives at cash-strapped Queen’s Park.

Ontario’s economy grew 0.7 per cent in the third quarter of last year outpacing growth in the United Kingdom, Japan, Italy, Germany, and France, according to data released Friday.

That compares to 0.2 per cent in the second quarter.

However, Ontario lagged slightly behind the U.S., which grew 0.9 per cent in the third quarter after a 0.4 per cent gain in the second.

“The province remains a growth leader in Canada and amongst G7 countries. But there is still more work to do,” said Finance Minister Charles Sousa, who has promised to eliminate a $4.3 billion deficit in the spring budget.

“We will keep moving forward with our plan to support an innovative and dynamic business environment and to ensure more communities across the province benefit from Ontario’s growth,” said Sousa.

With the Canadian dollar hovering at around 75 cents against the U.S. greenback – thanks to low oil prices that are walloping Alberta – Ontario exports are helping propel the economy.

“Higher exports were the primary driver behind the third quarter gain, while continued growth in household spending also contributed to the overall increase in real GDP (gross domestic product),” according to the 47-page fiscal report.

After a 2.7 per cent decline between April and June 2016, exports bounced back, rising 0.8 per cent.

The July to September data found consumer spending on durable goods — such as cars and auto parts — was up 0.5 per cent in the quarter while non-durables like food and drink, fuel, and pharmaceutical products rose 0.8 per cent.

But even though the net operating surplus of corporations jumped by 6 per cent, business investment decreased by 0.8 per cent, the first such decline since October-December 2013.

“Business investment in machinery and equipment (-5.9 per cent), non-residential structures (-1.2 per cent) and intellectual property products (-1.8 per cent) declined,” the report said.

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“This was partially offset by a 1.6 per cent gain in residential construction investment, reflecting strong growth in new construction, renovation and resale activity,” it continued.

“Government spending declined by 0.3 per cent, as lower current expenditures (-0.4 per cent) were partially offset by higher capital spending (+0.6 per cent).”