Slow Growth Forecast For California
Wednesday, June 20, 2012
California's economy should grow slowly over the next couple of years, according to the latest UCLA Anderson Forecast. The report predicts the state's unemployment rate will drop from the current ten-point-eight percent, to eight-point-three percent by 2014.
Jerry Nickelsburg is a Senior Economist with the school. He said California's coastal cities are improving more rapidly than the state's inland areas, where job growth is much slower.
"There needs to be a reinvention of inland California, finding a new engine of growth, because it's not going to be migration and residential construction for any time soon," said Nickelsburg.
Nickelsburg expects California's housing sector overall to pick up speed over the next two years, with a forty percent increase in housing starts next year. He also claimed the state's economic recovery will be driven largely by a strong tech sector.