California’s economy will continue to improve during the next three years, benefiting from the much-improved housing market, according to a new report.
But job growth and personal income gains will be modest, at best, especially compared to the historic rate, according to the UCLA Anderson Forecast.
UCLA Anderson senior economist Jerry Nickelsburg says the jobless rate will dip to an average of 9.6% this year, before dropping to 8.4% and 7.2% during the next two years. Real personal income growth – a closely watched figure that greatly affects consumer spending – will improve 1.4% this year, and peak at 3.6% in 2014 before sliding to 3.3% in 2015.
California’s economic growth, which has been buoyed by exports, will likely mirror the national estimates of 1.9% this year before climbing to 2.8% and 3.1% in 2014 and 2015, respectively, according to UCLA Anderson Forecast senior economist David Shulman.