Alaskan economic news in 2018: Key economic indicators, forecasts and outlook
Posted August 10, 2018 14:07:56 Alaskans are expecting a rebound in the economy as the ice caps melt, but some of the country’s largest businesses are facing uncertainty about their financial future as the world’s largest economy recovers from a severe ice storm.
Key points:A year ago, the Alaska economy was in freefallAlaskans expected to be hit hard by the stormA year later, the economy is projected to be up 3.5 per cent, but the state’s banks have been hit by the same threatA year on, the banks are struggling to recover from the worst of the stormThe Alaska economy is set to rebound after the icecaps melted, the biggest jump in seven years, but that’s not expected to last long as a major economic downturn looms.
Key point:The biggest economic shock from the storm came in 2018, with a 3.2 per cent fall in the number of people working in AlaskaThe economy was down 3.1 per cent in 2018 compared with the same period a year earlier, but economists say the impact of the ice storms is still evident.
A year earlier the economy was up 3 per cent.
The biggest hit was the retail and wholesale sector.
Its loss of jobs was the biggest since the global financial crisis in 2008.
But the recovery in the tourism sector is expected to help lift the economy.
Alaska’s economy is forecast to be back to normal by the end of the year, with the economy up 3 to 5 per cent this year, according to the US Census Bureau.
Alaskan Governor Bill Walker said it was clear that the economic recovery was going to take time, and he predicted the recovery would be even bigger in the second half of the century.
“The question that we have to ask ourselves is, what does it take for Alaska to become a much more dynamic, more dynamic state?
What does it mean for our economy, for our economic development, for the state?” he said.”
There’s no question that the ice has changed the way we see the economy, and it’s going to have an effect on how we see that economic development for the next 50 years, and that’s what we have a lot of work to do to be a better economy.”
The economy is expected in 2019 to grow at 2 per cent to 3 per, but there are fears the economy could suffer from another ice storm, or even a severe drought.
“If that happens, we’re going to see a significant increase in the amount of snow that’s coming down,” said economist David Cripps.
“So that’s going the other direction as well, and so the economic impact of that would be very significant.”
That’s why it’s so important that the state has a strong economy right now and we have the capacity to recover and be able to rebuild our economy if that happens.
“Mr Walker said that would mean that the financial sector, which had been hit hard during the storm, would see a lot more money coming in.”
Our financial system has really taken a hit, so we’re talking about a lot, a lot fewer people being able to access their funds,” he said.”
We are looking at about $20 billion that’s come into the system and that is going to be used to make up for what we’ve lost.
“Alaska has the largest number of banks in the country, with more than 4,400.
But it is facing an existential threat from the ice storm that hit the state on Monday.”
They’re probably going to close a number of their branches,” said Mr Cripp, adding that they could lose thousands of dollars in deposits and money flowing through their bank accounts.”
I’m sure there will be a lot less cash out there, and if you have any sort of emergency or you’re in a vulnerable position you might be unable to get your money out, so there are a lot places that are going to lose money,” he added.”
We are really in the middle of a very challenging time right now, and we’re definitely going to need to rebuild this country in a very difficult economic time.