LAEDC Forecast Report Says U.S., California and Southern California face a measured economic recovery, with stronger growth in 2011
Entertainment, international trade and tourism cited as regional industry leaders, with an economic boost from major infrastructure projects and a modest rebound in residential real estate
Los Angeles— A measured economic recovery is underway in the nation, the state and Southern California, according to the 2010-2011“Economic Forecast & Industry Outlook” report released today by the Kyser Center for Economic Research at the Los Angeles County Economic Development Corporation (LAEDC).
In California, three sectors will see employment growth during 2010: information, private education and health services. Like the national experience, unemployment rates in the state will remain high with the LAEDC forecasting a 12.3 percent average rate in 2010, easing down to 11.9 percent in 2011.
“We project that the U.S. economy will grow by 2.6 percent in 2010 and by 3.1 percent in 2011, after plunging by 2.4 percent during 2009,” said Nancy D. Sidhu, Ph.D., the LAEDC’s chief economist. “However, unemployment rates in the U.S. will remain uncomfortably high, averaging 9.9 percent in 2010 and 9.4 percent in 2011.”
Sidhu observed that consumer spending holds one of the keys to the economic recovery, with inflation-adjusted gains of 1.9 percent in 2010 and 2.7 percent in 2011 forecast, after falling by 0.6 percent in 2009.
“California’s economy is also on the recovery track, but the state will still lose 121,800 jobs in 2010,” said Sidhu. “However, this will be a huge improvement from the 668,200 jobs lost in 2009.” California’s housing industry will see a modest recovery in 2010, according to Sidhu. For the full story and link to the forecast visit: http://tinyurl.com/yf85d5m
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