ADVERTISEMENT
Advertise Here

Spin Control

State economist: Risk of recession increasing

OLYMPIA — Washington's economic outlook for the current budget cycle has gone from cautiously optimistic to “a sinking feeling of pessimism,” the state's chief economist said Thursday.

“The risk of the economy slipping back into recession has increased significantly,” Arun Raha said in the latest economic and revenue update.

In June, Raha was confident that Washington and the rest of the United States would avoid a “double dip recession” and that growth would continue, although slowly.

Since then, debt problems have spread beyond in Europe, the U.S. government barely avoided a default on U.S. bonds but couldn't escape a downgrading by a major rating agency, and consumer confidence “is in the tank.”

State job growth hasn't been as strong as projected, the single-family housing construction sector remains flat, banks and local governments have been laying off workers and about the only manufacturing sector growing is aerospace.

Oh, and by the way, state revenue collections are down about $9 million below forecast since June.

The next full revenue forecast is due in mid September. A significant drop in projected revenues could lead to a call by some legislators for a special session to make deeper cuts, sooner.
State agencies already were ordered to identify ways they could cut their budget by as much as 10 percent.


Please keep it civil. Don't post comments that are obscene, defamatory, threatening, off-topic, an infringement of copyright or an invasion of privacy. Read our forum standards and community guidelines.

You must be logged in to post comments. Please log in here or click the comment box below for options.

comments powered by Disqus
« Back to Spin Control

Get blog updates by email

About this blog

Jim Camden is a veteran political reporter for The Spokesman-Review.


Jonathan Brunt is an enterprise reporter for The Spokesman-Review.


Kip Hill is a general assignments reporter for The Spokesman-Review.

Nick Deshais covers Spokane City Hall for The Spokesman-Review.

Latest comments »

Read all the posts from recent conversations on Spin Control.

Search this blog
Subscribe to this blog
ADVERTISEMENT
Advertise Here