ASU's Economic Forecast for Arizona in 2020

[Melanie Johnston]

The Arizona Republic recently covered ASU's economic forecast for the state.

These Cliff Notes (below) support what I've shared when speaking to investor groups outside of Arizona:

• Arizona's economy is strong and growth will continue, but at a slower rate
• Our population will grow by about 300 people a day (110,000 during the year)
• Our economy is diverse and no longer dependent on 1 or 2 industries
• Unemployment remains low

Here is an excerpt from the Arizona Republic article, written by Rachel Leingang:

"Arizona's economy is still growing, but growth likely will be slower in 2020 than in the previous two years, an annual economic forecast from Arizona State University predicted Wednesday.

Arizona likely will continue attracting new residents at one of the highest rates in the country next year, though that could be a smaller total number amount than in 2018 and 2019.

And the state should remain among the leading growth states in the country, according to the forecast by Lee McPheters, an economics professor at ASU and director of the JPMorgan Chase Economic Outlook Center.

Many signs are positive for Arizona: Unemployment remains low. McPheters projected the population will grow by 110,000 people in 2020. The state will add 70,000 new jobs next year, down from 78,800 in 2018, he said.

Our economy is diversifying and no longer relies strongly on any one industry, like it did on construction and real estate earlier this century, he said.

While construction is still the fastest-growing sector in the greater Phoenix area, other sectors like education, transport and warehouses, professional and technical, and manufacturing all showed strong growth."

The article also mentioned that uncertainty over trade policy and other national factors could negatively impact Arizona's economy, as they would the national economy.

Food for thought as you evaluate potential investments for 2020.