Economic forecast: good, getting better

Tuesday, 08 May 2007

Page 1 of 2 By Shelia Watson CHARLESTON -- Things are a bit cool at the moment in the statewide economy, but they’re starting to heat up. This was the official word on the economic forecast from Donald Schunk, research economist with the Coastal Federal Center for Economic and Community Development at Coastal Carolina University, at the 42nd annual conference of the South Carolina Economic Developers’ Association this week. “The real growth is slower now, but it’ll return with the coming increase in the housing market,” Schunk said. Statewide, growth held at 3.3% in 2006 and is expected to dip slightly to 2.1% in 2007 and begin its return with 3.1% in 2008. “That’s an indication of solid growth,” he said. “That’s where we want to see it.” The employment rate, which Schunk calls “one of the best measures of overall economic conditions,” was 1.92 million as of March. “Over the last year or two, there’s been rapid job growth in the state, and for the most part, South Carolina mirrors the rate in the country,” he explained to the crowd of more than 360 at the event. “The only divergent factor was the unemployment rate in the last few years, when the nation showed less unemployment than the state.” In terms of job growth, 2006 was at 1.9%, the fastest growth since 1999. Projections are for 2007 to come in at 1.5% and 2008 at 1.6%. The unemployment rate for 2006 was 6.5%, with 2007 expected to be 5.9% and 2008 at 5.5%. “Unemployment rates will continue to fall, but they’ll still be above the national average,” he said. “But it does pose a good question, which is: Why is the unemployment rate higher if the job growth is good? But there’s an explanation for that,” he said. << Start < Prev 1 2 Next > End >>