Virginia's economy is expected to continue its slow growth according to a report out Wednesday from the Thomas Jefferson Institute for Public Policy.
The annual economic forecast projects employment will expand by around one percent in both 2013 and 2014. But that's well below the 1.9 percent annualized growth between 1992 and 2007.
The report partially blames sequestration cuts - which hit Virginia harder than other places, because so much federal contract spending is in the commonwealth.
For the full report, click here.
Thomas Jefferson Institute for Public Policy
The Thomas Jefferson Institute for Public Policy released its annual Virginia Economic Forecast, authored by Dr. Christine Chmura and her team at Chmura Economics & Analytics of Richmond, the state's leading private economic consulting company.
With Virginia facing the brunt of the federal government's spending reductions known as sequestration, Chmura predicts that the impact on Virginia will be greater than other states. That is because Virginia received more federal contract spending than any other state. Fully 13.7% of the Virginia's gross state product came from federal contracts in 2011, the last year figures are available. Even with this negative impact on Virginia's economy from federal cutbacks, Chmura predicts that Virginia's employment will expand by 0.8% in 2013 and by 1.1% in 2014. But this is well below the 1.9% annualized job growth in the state between 1992 and 2007.
This year's Forecast states that the nation's economic growth "remains modest and uneven" and that the recovery from the Great Recession has been tepid. Chmura projects that the nation's Gross Domestic Product (GDP) will grow by only 1.4% this year and by 2.6% next year.
Virginia's employment expanded by only 0.9% for the year ending in March for an additional 34,481 jobs, slower than the job growth nationally. These new jobs have come from four sectors of the economy: education and health care finance, insurance, and real estate. The housing market in Virginia has improved by a significant 8.2% between 2011 and 2012 (the last numbers available for this report).
Although the growth coming out of the recession has been slower than in the past, the Jefferson Institute's Economic Forecast predicts continue slow growth even with the impact of the federal spending cuts due to sequestration.
A copy of the Thomas Jefferson Institute's Annual Economic Forecast can be found by clicking here.