Economist Nathaniel Karp with BBVA Compass expects economic growth in Texas and other states it serves to outpace the nation.
“We expect sustainable but slow economic growth. Basically inflation will remain low in the next coming quarters, and the Federal Reserve will keep interest rates low for a prolonged period of time. And in the Sun Belt, we continue to see that most of the states will outperform the national average. There has been very good news in the Texas labor market. The number of layoffs is receding and the unemployment rate is stabilizing.”
Some industries are faring better than others in the global recovery.
“The auto sector, chemicals, food and beverage, computers and electronics (are) benefiting from the global recovery. The industries which are facing a tougher environment–obviously furniture, printing and so on. We’re still seeing some net declines, but the important things is that some of the leading indicators are showing very strong trends. (We expect) professional and business services, which are some of the highest-paying jobs, to also start showing stronger trends.”
Karp expects to see strong growth in Latin America, also. Some countries in Asia are already increasing interest rates.
To view this report, visit www.bbvacompass.com/compass/publications/pdf/regional/US_Regional_4Q09.pdf.