Economist: Idaho To See Steady Growth

Idaho should see slow, steady growth in 1999, First Security’s chief economist predicts.

Population and personal income will grow at lower levels than in 1998, economist Kelly Matthews told members of the Coeur d’Alene business community.

The state will grow by about 18,000 new residents this year, down from a 19,820 gain in 1998, he predicted. Personal income will grow a modest 4.6 percent, down from gains of 4.9 percent last year, Matthews said.

As a result, single-family construction will fall by 10 percent, he added. Statewide unemployment rates are expected to creep up to 5.4 percent.

Matthew’s good news: The worst of the Asian crisis appears to be over.

Idaho’s timber industry lost 700 jobs in 1998, due to reductions in overseas exports and a glut of products on the domestic market. Wheat production in Idaho also dropped 10 percent last year.

“The worst is past, but I can’t tell you when it will turn around,” Matthews said.

He gave the same predictions for the Canadian exchange rate, which influences tourism and retail spending in North Idaho.