Despite the pandemic’s devastation to state and local businesses this year, Arizona’s economic outlook in 2021 is fairly strong — at least, according to the office that manages the state budget.

“Housing market continues to have impressive gains, up 11%, year over year in Arizona," said Dennis Stevenson. chief investment officer with Arizona’s Treasury Office. At Monday’s monthly meeting, he gave an optimistic outlook for Arizona’s economy for December and into 2021.

He cited some financial gains for Arizona in 2020, like tax collections, which are up 16% this past month, compared with the same month a year ago. He also said consumer bank deposits are up 24 percent year over year — and that is unprecedented in state history.

“The consumers are consuming, and it’s supporting our economy," Stevenson said, as he predicted another federal stimulus package to pass in the first quarter of 2021. With it, he also forecasted increases in food prices and labor rates as inflation rises.

Arizona’s Treasury department manages approximately $19 billion in assets and oversees the state budget of approximately $40 billion.