Mayors from across Washington heard from Dr. Steve Lerch of the Economic and Revenue Forecast Council earlier this week as part of AWC’s biannual Mayors Exchange.
The Washington state economy is generally in good condition and continues to outperform the nation. Key points from Dr. Lerch’s presentation:
- Our state’s job growth remains strong, and the unemployment rate remains near an all-time low.
- International trade policy remains uncertain, especially with the geopolitical risks of Iran, North Korea, China, Russia, and Brexit.
- Boeing’s 737 MAX has raised levels of uncertainty. The company suspended production of the jet in January but is expected to resume production in March and be cleared to fly this summer. Boeing has indicated that affected employees will be reassigned and there will be no layoffs due to the shutdown.
- A recent economist survey shows a slight decline in the probability of a near-term recession, but a heightened risk of a downturn in new construction in the state.
Overall, the takeaway is that economic growth is expected to continue for the next year, but possibly at a slower rate.
The Economic and Revenue Forecast Council will release its official February Economic and Revenue Forecast on February 19 at 9 am. TVW will broadcast the meeting.