State’s economy remains mired
September 21, 2012
A declining rebound of California’s economy is being predicted by the UCLA Anderson Forecast, with fiscal situations on other continents given as the primary reason. (San Jose Mercury News)
China’s economic tumble, Europe’s recession and the slow U.S. recovery have caused the respected forecast to revise predictions from just three months ago, which called for a stronger state rally. Among the group’s prognoses is a stagnant unemployment rate which will continue to hover near 10 percent.
But the outlook is not all bleak. Metropolitan areas like San Francisco-San Mateo, and tech regions like the Silicon Valley, are posting the fastest rate of annual employment growth in the country.
“This tech surge is real,” said John Silvia, chief economist for San Francisco-based Wells Fargo Bank. “People are spending money on smartphones, on tablets, on iPads, on equipment to interact and communicate with each other.” Economists believe the technology boom won’t vanish anytime soon.