Is Northeast Florida in recovery?
Carol Dole
Assistant Professor of Economics Davis College of Business Jacksonville University
Northeast Florida has one problem not all parts of the U.S. have. The housing market is still perilously perched. Will prices rise or still fall? The problems of underwater mortgages and foreclosures and the impact on household spending continue to dampen the recovery in the area. I don’t see possibilities for strong job growth.
Paul Mason
Professor of Economics Coggin College of Business University of North Florida
I think that we are, but even slower than the national recovery. Our larger housing glut than average combined with reduced tourism due to the perception of the oil spill effects and our dependence on financial services industries has made this recession more powerful in the local area. We were spared the worst of the early 1980s, early 1990s and early 2000s recessions, but this one has hit us much harder than we are accustomed to, and the recovery will be slow and bumpy.
Lynn Reaser
Chief Economist Fermanian Business and Economic Institute Point Loma Nazarene University, San Diego
President, National Association for Business Economics
Northeast Florida appears to be gradually recovering along with the rest of the country. The largest constraints involve commercial real estate and state and local government spending. On the positive side, international trade, tourism, health care, and business services are providing some positive support. Single-family homebuilding has also picked up this year.
Mark Vitner
Managing Director and Senior Economist Wells Fargo Securities LLC
Northeast Florida is in recovery but has a great deal of ground to recover. The greater Jacksonville area lost 56,000 jobs during the recession and permits for new single-family homes tumbled more than 80.9 percent from their peak in late 2005. Economic development activity has also picked up recently, which should lead to stronger job gains later this year.
For the full story published, "The Experts Say..." (8-5-2010) visit the Financial News and Daily Record online http://www.jaxdailyrecord.com/showstory.php?Story_id=531609
The recession revealed many of the weaknesses in the regional economy that need to be adjusted, else it will remain vulnerable to future economic downturns. The quote by Paul Mason seems to illustrate this by pointing-out the excessive dependence home construction, financial services, and tourism as economic drivers. If the experts are correct, the recovery in Northeast Florida will be a slow slog. If it will be a drawn-out process regardless of what is done, then why not use the recovery as an opportunity to reconfigure the regional economy?
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