Kentucky’s leaders expect a more efficient economy to slowly move forward this year
Though expectations for 2010 vary, the consensus falls in the half-full/half-empty zone of solid economic growth but continued high unemployment. On the whole, Kentucky is likely to see SDP growth of 3-4 percent, which is not bad. But the jobless rate forecast is 9.5 -10 percent through the year, which is not good.
In The Lane Report’s annual survey of public and private sector leaders from across the state, there is a sense that the worst likely is over for the Great Recession that sent shivers through the economy globally for the past year and a half. Kentucky leaders express optimism, not so much that happy days are here again but that the painful belt tightening and sacrifice has probably been productive.
Organizations have made themselves stronger and more productive. That is expected to lead to improved profitability in 2010 and some hiring but likely not enough to drive the jobless rate down from around 10 percent. Unemployment rates in that range limit consumer spending – directly because so many people don’t have an income and indirectly because those with jobs remain a little fearful about their own prospects.
What activity the always-important housing sector is seeing is largely due to government tax incentives, which are scheduled to run out by mid-year. If the economic mood can brighten by then, that sector hopes to sustain its budding signs of life. Read more here.
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