New Minnesota State Economist Says Growth Fundamentals Are In Place

The fundamentals for growth in the U.S. economy are in place for 2014 and 2015, according to Minnesota State Economist Dr. Laura Kalambokidis.

Speaking before retailers at the Minnesota Retailers Association Annual Meeting Thursday, October 24, 2013, Kalambokidis painted a picture of an economy ready to grow, but cautioned that policy uncertainty and deficits could challenge growth in Minnesota and across the nation.

During her speech, Kalambokidis made the following points related to our economy:

• Basic fundamentals for growth in the U.S. economy are in place for 2014, 2015;

• Minnesota's employment has recovered to pre-recession levels;
• Currently, Minnesota employment growth exceeds the national rate;
• Minnesota's unemployment rate is well below nation's;
• Minnesota's per capita income exceeds U.S. level;
• Federal actions create near-term economic uncertainties;
• Policy uncertainty imposes costs;
• Minnesota's labor force growth is slowing sharply;
• In the long run, baby boomer retirements are expected to extend federal deficits;
• U.S. real GDP growth is expected to average just 2.5 percent per year over the next 30 years, well below the 3.1 percent 20-year average prior to the recession; and
• U.S. real GDP growth over next 30 years expected to be well below 20-year pre-reccession average.

In addition to Kalambokidis, Minnesota Senator Terri Bonoff addressed Annual Meeting attendees, thanking retailers for the jobs they provide and for their contributions to the Minnesota economy.