Metro Areas Expect to See Real Economic Growth in 2014
29 Jan, 2014
Nearly all (356) of the nation’s 363 metropolitan areas are expected to see real economic growth in 2014, unlike in 2013 when 97 metropolitan areas experienced declining economies, according to an economic report recently released by The U.S. Conference of Mayors. The mayors met in Washington, D.C., January 22-24. More than 280 U.S. mayors met with federal officials and CEOs.
Done in conjunction with IHS Global Insight, the report also shows that nearly all (340) of the metros expect to see real Gross Metropolitan Growth of 1 percent or higher, compared to only 183 metros seeing the same growth in 2013.
Other key findings of the report include:
The National Economy
• U.S. real GDP growth is forecast to be 2.7% in 2014 and 3.2% in 2015; up from 1.9% in 2013.
• Exports are forecast to increase 4.6% in 2014, up from 2013’s 2.5%; 2015 exports will continue to expand at 5.1% rate in 2015.
• Growth in consumption will jump to 2.8% compared to only 2.0% in 2013.
• State and local government sector will finally stop its drag on GDP growth, inching into positive territory with a 0.4% growth in 2014, after a -0.2% contraction in 2013 and -.07% in 2012.
• The U.S. unemployment rate is forecast to drop to 6.5% in 2014 and fall to 5.9% for 2015.
• The U.S. unemployment rate will hit 6.0% in early 2015;
• Payroll employment growth rate will be only 1.7% in 2014, a slight increase from the 1.6% growth in 2013. Employment growth in 2015 is slated to be 2.0 %.
• Labor force participation has crashed from a level of 66.1% in 2008 to 63.0%
• U.S. employment levels will finally regain its January 2008 peak by mid-2014.
Illustration by winnond at Free Digital Photos.net
Source: U. S. Conference of Mayors