A think-tank says Ontario’s economy is holding up well despite federal and provincial austerity moves.

The Ottawa-based Conference Board says the province could even be headed for a modest rebound.

The think-tank says government efforts to reign in deficits will likely limit growth in Ontario to about 1.8 per cent this year.

But it says the province will rebound with growth rates of 2.1 per cent next year and 2.6 per cent in 2014, thanks to a U-S economic recovery which appears to be gaining steam.