Forecast: Slow Growth Ahead For Mass., N.E.
Organizers of a major economic conference in Boston this week see slow growth ahead for Massachusetts and New England.
According to the New England Economic Project (NEEP), all six states in the region are projected to see employment growth below the national average during a forecast period that extends to 2017.
The Greater Boston area has more than recovered the jobs lost during the recession and has been the “bright spot” in the region’s economy, but the broader region is not expected to see pre-recession employment levels until 2014, with unemployment in New England not expected to fall below 6 percent until 2016.
Prepared by Ross Gittell, chancellor of the Community College System of New Hampshire, the New England forecast calls for growth rates “below what would typically be associated with strong or even moderate growth.”
The project will host its fall outlook conference Thursday at the Federal Reserve Bank of Boston.
Summaries of economic forecasts in each of the six states were released today. For the Bay State, the NEEP cited the following:
- National and state economic growth this year has been restrained by sequestration spending cuts and the payroll tax increase. Fourth-quarter growth this year will be negatively impacted by the government shutdown and the inconclusive solution to the spending and debt ceiling crises.
- The housing market is the bright spot. Statewide, sales, prices and permits have exhibited strong growth. Prices are expected to reach their prior peak level by 2017.
- Meanwhile, the stain on the state’s economy this year has been unemployment. The jobless rate has risen one-half of a percentage point since December, from 6.7 percent to 7.2 in August. It’s expected to improve slowly, falling to 5.2 percent in 2017.
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