Slower Economic Growth Expected

The Inland Northwest’s economy will grow in 1996, but much more slowly than in recent years, a panel of experts said Thursday.

Officials of Spokane-area chambers of commerce and tourism and economic development organizations gave their forecasts to about 100 business leaders during a panel discussion sponsored by Farmers & Merchants Bank.

Spokane County’s population growth, which averaged about 9 percent a year for the past 15 years, has slowed to less than 2 percent, said Ray Murphy, executive director of the Spokane Valley Chamber of Commerce.

Taxable retail sales, which have averaged annual growth of about 9 percent, will slow to about half that in the first three quarters of 1996, but rebound in 1997, Murphy said.

Murphy predicted economic growth will be flat to slow in the next year.

The region’s economy is being buoyed by a positive outlook in agriculture, which has grown every year since 1987, said Rich Hadley, president and CEO of the Spokane Area Chamber of Commerce.

But it’s likely that the area’s timber industry will continue its decline. Lumber consumption was down 2.5 percent in 1995 and the wood chip market is beginning to show declines after a strong year, Hadley said.