Economists Say Arizona's Recovery Has Moved From Mediocre To Okay
Arizona’s recovery has moved from mediocre to okay. That is the word from economists Friday who spoke about the world, national and state economies at the Phoenix Chamber of Commerce Annual Economic Outlook Breakfast. Arizona’s economy still trails the national recovery. Seventy-eight percent of the jobs lost in the U.S. during the recession have been regained, but Arizona has only recovered about 44 percent of the lost jobs.
But things are getting better. In 2010 Arizona was 49th in job growth, and now it is back up to number eight. Economist Ellitot Pollack said while the recovery continues to plod along, he does not see signs of another slowdown.
"Recessions don’t just happen, they happen for specific reason. Consumers have too much debt. Businesses have too much inventory; they basically have too much capacity," Pollack said. "Fed has a restrictive policy. None of that’s in the cards right now."
Other economists Friday morning spoke about how banks are flush with cash and looking to lend money.
"I think also by 2015, credit markets, especially for mortgages, will have eased up a little," Pollack said.
Pollack said the Phoenix homebuilding market dropped by almost 90 percent during the recession. He said that industry will heat up as the Valley’s population continues to grow.