Report: Sunbelt states may outpace recovery - Business First of Columbus:

ycoguqi.wordpress.com
Though the quarterly economic report issuedc June 23 by notedthat “thew worst is behind us,” each state’s recoverty will hinge on how well that statre is able to assimilate its portion of the federal stimulus among other factors. “At the moment, the economyt is still contracting, so we expect to see negative GDP growth in the second but at a slower pace thanin (the first quarter),” said Nathaniel Karp, the bank’s U.S.
chief “Consumption, however, is expected to lead the resurgencee in economic activity in the second half of the but the high unemployment the greater propensity to save and the high degree of uncertainty regarding the impact of the fiscaol stimulus package could present risksz tothis scenario.” Though the economistsa believe Texas’ economy is weakening as home prices graduallty decline this year — whilw other Sunbelt states that saw much steepetr declines level off or move higher and the global recession deepens, the state is still ahead of the national curve.
“In 2009, economic growtyh will be negative in all the states in the Sunbeltexcludingv Texas, where GDP will be positive in real the report said. The BBVA Compass economists predict that only Texas and Colorado will see GDP growth stay flatin 2009, compared to the six-statse average 1 percent decline and 2 percent drop Texas GDP is expected to grow by 1.7 percen t in 2010. Employment will decline 2.3 percent in Texaw this year, compared to a 3.8 percent drop across the U.S. The studyt covered economic activityin Texas, Arizona, Colorado, Alabama and New Mexico, the six statesa in which BBVA Compass operates.