Home » NEWS » Economy » Mississippi economic growth continues, but slower

Mississippi economic growth continues, but slower

By JACK WEATHERLY

Mississippi is on track to have its second consecutive year of growth in its gross domestic product, though the outlook has cooled in the first half of 2016.

Two straight years of growth would be the first since 2008, when the national recession started, according to a report from the Mississippi Institutions of Higher Learning’s University Research Center. A recession is generally defined as two consecutive quarters of contraction.

Growth in 2015 was .7 percent, Mississippi’s first expansion since 2012.

And the project growth for 2016 is now 1.6 percent, down one-tenth of a percentage point from the first-quarter report.

0716mseo.pdfAnd growth for 2017 is 1.8 percent, down .4 of a percentage point from the first quarter.

“We’re still expecting growth. We’re just expecting a little slower growth,” state economist Darrin Webb said in an interview.

“It largely has to do with the national economy,” Webb said.

The U.S. economy expanded at 1.1 percent in the first quarter, but the Bureau of Economic Analysis has not reported the second-quarter performance.

“It’s not so much anything we’re seeing in particular [job classifications] in Mississippi,” Webb continued.
Webb said that Mississippi nonfarm employment numbers were down .2 of a percentage point in May from April, reflecting a dramatic downturn in new jobs in May across the nation, when there was only a net gain of 38,000 jobs. There was a gain of 287,000 in June, the Bureau of Labor Statistics reported, while the U.S. unemployment rate rose to 4.9 percent, up .2 of a percentage point from May.

U.S. GDP growth, adjusted for inflation, is projected at 2.4 percent for 2017 and 2018, according to the federal Bureau of Economic Analysis.

However, the bureau revised those numbers downward by .4 and .3 of a percentage point, respectively, in part from the departure of the United Kingdom from the European Union.

The UK is one not one of Mississippi’s biggest import partners, ranking 17th in 2015 in terms of value of exports from the Magnolia State.

The value of Mississippi products and services bought by the UK last year amounted to $169 million, or 1.6 percent of the state’s exports, according to the U.S. Census Bureau.

The total value of Mississippi’s top partners from among the 28 EU nations is $107 billion, or 9.9 percent of all exports.

“If the European economy slows, that’s going to affect us. If the global economy slows, that’s going to affect us,” Webb said.

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Jack Weatherly

One comment

  1. Lynn Fitch would make an excellent choice for governor .

Leave a Reply

Your email address will not be published. Required fields are marked *

*