It's going to be an "agonizing slow crawl," but Washington is making its way out of the recession.
That was the forecast given by the state's chief economist, Arun Raha, to a crowd of 320 business professionals today in Tacoma during the Financial Forecast 2011: An Economic Outlook.
Raha, along with fellow panelists Michael Parks, editor emeritus of Marple's Letter, and Ray Davis, CEO of Umpqua Bank, also pointed out areas of concern, such as a potential trade war with China, the housing industry remaining soft and political gridlock. However, they said Washington is in better shape than other states because of companies like Boeing and Microsoft, its trade market and the presence of military bases.
Parks said he believes Washington will benefit from a "tech refresh" as large companies look to update their equipment and systems. He also said that it appears Boeing officials are making an effort to show their appreciation for the area, which is likely a good sign that the state will continue to benefit from the aerospace giant's presence.
While some of those in attendance laughed and snickered when Raha said the recession was over, and questioned him about his conclusions relating to the economy, he stood by his forecast. Raha said Washington is at the bottom of a U- shaped recession and is not in store for a double dip.
While he agreed that the recession is over, Davis compared the recovery to the aftermath of Hurricane Katrina. He said that just like the people in Louisiana continue to pick up rubble and restore the area's affected by the storm years later, people in Washington must prepare to work at putting the economy back together.
Davis, whose bank presented the event in partnership with Busienss Examiner, also said there is likely to be more shakeup in the banking industry because of mass consolidation.
