Stormy Forecast for RI Economy

The dismal science has once again lived up to its name. This latest economic forecast suggests that Rhode Island won’t get relief from the recession any time soon. Here are the highlights from The Providence Journal report:

● The state will lose 9,000 more jobs next year, pushing unemployment up to 14.1 percent.

● Unemployment won’t go back to below 10 percent until 2013, not counting the under-employed part-timers and those who have left the workforce.

● The annual median home price will sink from $246,200 in 2008 to $181,600 in 2010.

● The annual median home price may continue to slide from $246,200 in 2008 to an estimated $181,600 in 2010.

● That will not improve until 2012.

● Bankrupties will increase as population growth remains flat.

The report recommends that state legislators identify and attract sectors with potential for job and income creation. But even if its recommendations are heeded, it still warns that the “economic outlook … over the next few years is somewhat dismal.” One reason predictions have worsened is that economists over-estimated the impact of the economic stimulus, according to The Journal story.

Well, it’s not like we didn’t see that coming.

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