Region’S Economy To Creep Forward In ‘99 Analyst Predicts Slow, Steady Growth As Inflation, Interest Rates Stay Low

Spokane’s economy is poised to chug slowly ahead in 1999, “economic handicap per” Shaun O’L. Higgins told a local audience Wednesday.

Speaking to members and guests of the Spokane Advertising Federation during a luncheon at the Ag Trade Center, Higgins highlighted numerous statistical, demographic and other business factors that will shape the region’s economy this year.

It was the 16th annual economic forecast event put on by the advertising federation.

“I wish I could tell you 1999 is going to be a terrific year, but I can’t do that,” said Higgins, who is director of sales and marketing for The Spokesman-Review.

On the positive side, Higgins noted that inflation will likely remain low and interest rates, too, should stay down. Additionally, Higgins said, new retail developments, such as River Park Square, will draw shoppers from outside the area.

Turning toward the downside, Higgins touched heavily on the low prices for farm products continuing to plague rural communities.

Higgins, who calls himself an “economic handicapper,” also forecast that job growth would slow locally, the unemployment rate would rest between 5 and 6 percent and wage growth would slow.

Higgins also discussed economic “wild cards” that will take time to unfold before a definitive impact can be measured.

One such question mark will be the Year 2000 compliance rush. Higgins said in the short term, retail outlets may benefit by selling computer hardware, software and other services. However, compliance efforts may hamstring business and delay major purchases, he added.

Moreover, the Kaiser strike muddies the forecast by skewing employment figures and possibly sales projections at retail outlets.

In his perspective on the future of Spokane’s economy, Higgins said, “Despite year-to-year fluctuations, in which 1999 will be a less satisfactory year, the economy continues in a long-term bullish posture.”