Area Economists See Slow Growth Pattern Holding for New England

New England Economic Partnership (NEEP) forecast manager Ross Gittell, chancellor of the Community College System of New Hampshire, says that the New England region as a whole continues to recover from the recession, yet there is significant variance in the pace of recovery from state to state. While Massachusetts and Vermont experience the strongest recovery, Rhode Island and Maine continue to lag. Overall, the NEEP economists note, the region’s economy continues to be negatively affected by conditions beyond New England’s borders, including weaknesses and vulnerabilities in the European economy and the fiscal affects from sequestration. Despite this, NEEP economists, according to a New England Council press release, predict that the economy will continue to grow slowly with employment growth averaging 1.4 percent per year and overall growth averaging 3.3 percent per year through 2016. They predict that the region will not return to pre-recession employment levels until 2015.
 
The economists report that the housing market in New England and nationwide continues to emerge as a positive driver in the economy. While manufacturing employment has been on the decline for the past three decades, the economists predict that the region’s manufacturing employment will increase by 1.3 percent from 2012 to 2016 with about 7,000 new jobs added. They note that there is potential for even more growth in the manufacturing sector if steps are taken to link manufacturing more strongly to research and development strengths in the region, and to ensure an appropriately skilled work force for advanced manufacturing in New England.