Economists at the Indiana Business Research Center are forecasting economic growth for the state in 2014, but it will be a small growth, due in large part to a tepid recovery in the last year.
In the first six months of 2013, the national economy grew 1.7 percent, far below expectations.
“But we expect growth to increase in 2014 both in terms of GDP and in terms of employment growth,” says Jerry Conover, director of the Indiana Business Research Center. “At the same time, they won’t be strong enough to really make a big move out of the slow pace of recovery.”
IBRC economists say Indiana’s economy is expected to grow 2 percent in the first half of 2014, which they called “unacceptable.”
They expect the national rate of economic growth to be around 3 percent by the end of 2014. Indiana will likely do a little better, but only because of ” below sub-par” growth in 2013.
Researchers say Indiana’s current unemployment rate of 8.1 percent is expected to drop about one percent each year over the next two years to 6.8 percent in 2014 and 6.0 in 2015.
Indiana’s personal income levels have also been rising at a faster rate than the national average. Still, the researchers say the state will be in recovery mode for at least a couple more years.
A full economic outlook report will be released in December.