Analyst Sees Idaho Having Prosperous Year

Idaho and Kootenai County can expect another prosperous year, though 2000 won’t be quite as good as 1999, an economic analyst predicted Thursday.

Kelly Matthews, chief economist for First Security Bank, forecast slower growth in population, jobs and personal income over the next year.

However, “prosperity should be able to be continued in North Idaho in the year 2000,” Matthews told a breakfast crowd at the Coeur d’Alene Resort. “The state’s economic growth pace is expected to ease only modestly from last year.”

About 21,000 people moved to Idaho in the past two years, boosting home building and services.

Home building was also strong in Kootenai County. Construction jobs grew about 5 percent in the county last year, despite a downturn in commercial construction.

“There was a lot of activity from people trying to lock in the lower interest rates,” said Tom Messina, a Coeur d’Alene custom home builder.

Idaho’s personal income grew more than 6 percent in 1999, outpacing the national average. Part of the gain came from stronger farm incomes, recovering from two years of large declines, Matthews said.

The state also added about 15,650 non-farm jobs last year. Hourly workers saw wages increase by about 3.5 percent.

Matthew expects net migration to slow to 9,000 during the next year. Construction will plateau as a result of more moderate population growth and higher interest rates, he predicted.

Matthews also forecast 13,430 new jobs for Idaho in 2000, and income growth of 5 percent.