Dec. 16, 2011
UI economic forecaster sees growing economy for Iowa
The Iowa economy will experience steady growth in the next two years, according to the latest forecast from the University of Iowa's Institute for Economic Research.
"The outlook is reasonably positive, and I see the forecasts for the next two years as relatively strong," said Charles Whiteman, director of the institute and professor of economics and associate dean in the Tippie College of Business.
According to Whiteman's forecast, personal income earned by Iowans will grow by 6.3 percent in the current year, then grow by 2.5 percent in 2012 and 2.4 percent in 2013.
"Income growth so far this year is the strongest Iowa has seen since the onset of the recent recession in Iowa, and it also leads to relatively strong revenue growth predictions," Whiteman said.
He expects employment will grow by .9 percent this year and 1 percent in 2012. He also estimates that state revenue will increase by 4.2 percent this year over last, though the diversion of $106 million in cigarette and tobacco tax revenues to the Health Care Trust fund will bring the growth rate down to 2.7 percent.
Whiteman's report was released Wednesday. The state's Revenue Estimating Conference met Thursday.
The Institute for Economic Research serves as an advisory group to the Governor's Council of Economic Advisors and issues a quarterly forecast of Iowa income, employment, and state revenues developed using the latest advances in econometrics.
STORY SOURCE: University of Iowa News Service, 300 Plaza Centre One, Iowa City, Iowa 52242-2500
MEDIA CONTACT: Charles Whiteman, director, Institute for Economic Research, 319-335-0865, email@example.com; Tom Snee, 319-384-0010 (office), 319-541-8434 (cell), firstname.lastname@example.org