Stalled growth in Ontario will result in Canada’s GDP growth rate slipping this year, according to a new forecast by Scotia Economics.

On Wednesday, the Bank of Nova Scotia released its latest prediction for Canada’s economy and said that Ontario’s economy will not grow in 2008. That is compared to GDP growth for the province of 2.1% last year.

As a result, Ontario’s showing will drag down Canada’s overall performance, Scotiabank predicted.

Canada is predicted to grow 0.7%, down three-quarters versus GDP growth of 2.7% in 2007.

The best-performing region of the country will continue to be the west, Scotiabank predicted.

Saskatchewan should grow by 2.8% this year, leading all provinces.

British Columbia will be next at 2.1%, with Alberta coming in third place at two%.

Quebec will perform only marginally better than Ontario in 2008, inching ahead 0.4%.

Meanwhile, the economies of the four Atlantic provinces will expand between 0.5% and 1.2%, with New Brunswick the area’s top economic dog and Prince Edward Island bringing up the rear.

Scotiabank forecast a recovery of sorts for 2009. Canada’s GDP will expand 1.4%, twice the 2008 rate.

Only P.E.I. and Ontario will still be below 1% growth next year, with Ontario’s GDP forecast to expand at 0.8% rate.