Alabama’s economy in slow recovery
Alabama’s economic recovery has been slow as a result of the public sector’s drag on the state’s overall performance, according to Wells Fargo’s economists. However, they expect overall growth to strengthen in the coming years.
Alabama’s economic recovery has been slow as a result of the public sector’s drag on the state’s overall performance, according to Wells Fargo’s[5] economists. However, they expect overall growth to strengthen in the coming years.
Wells Fargo’s Alabama Economic Outlook report released this week said the recession and bankruptcy of Jefferson County took a heavy toll on Alabama’s public sector, which has downsized tremendously in an effort to restore fiscal balance. However, those efforts have weakened the labor market and subtracted from overall GDP growth - which grew at a sluggish 0.8 percent in 2013.
The federal government continues to prune spending, it said, and as a result, industries where government contractors play a critical role have been impacted.
A key strength for the state is manufacturing, primarily transportation equipment.
“Consistently strong demand for automobiles, particularly several of the popular models made in Alabama, has kept the state’s important motor vehicle industry humming,” the report said.
Education and health services have also posted solid gains, but the housing market recovery remains in the early stages.
A recent report by Business Insider said[6] Alabama’s recovery from the recession is the sixth slowest in the United States.
Antrenise Cole covers banking, finance, small business lending, venture capital, accounting and law for the Birmingham Business Journal. Click here to follow her on Twitter.[7]
References
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- ^ Wells Fargo’s (www.bizjournals.com)
- ^ A recent report by Business Insider said (www.bizjournals.com)
- ^ Click here to follow her on Twitter. (twitter.com)