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Report: Indiana Could Push Through Underperforming Economy

By Sophia Saliby

Posted November 3, 2016

A report from Indiana University's Kelley School of Business characterizes the nation's economy as underperforming.

Researchers say a lack of government and private investment may have set the national economy back. And while household spending is up and may have helped the economy, it can't be the only factor working to improve growth.

Kelley School economist Kyle Anderson worked on the report. He says the country has seen growth in the past eight years since the recession, but not as fast as economists would have wanted.

"It's reflected there that it really is kind of a mixed bag. We've seen a number of years of steady growth - steady but pretty slow," Anderson says.

When looking back at the report from last year, numbers are slightly weaker than what was expected. Growth of real GDP was predicted to be 2.5 percent, but based on current numbers this year the actual growth has only averaged 1.7 percent.

This is the second year in a row researchers have incorrectly predicted growth to exceed 2 percent. Anderson says these overly-optimistic predictions have been a trend, but these numbers don't mean we're in a bad place because we're almost at full employment.

But, according to the report, Indiana's economy could be in the position to outperform the nation's economy. Growth in the life sciences and auto industries have contributed to the positive trend.

Anderson adds that there's been added uncertainty this year due to the election. He doesn't expect any unforeseen changes due to results, but markets could impacted in the short-term.

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