According to an economic forecast by the Connecticut Center for Economic Analysis at the University of Connecticut, Connecticut”™s economy is performing reasonably well considering national news of tens of thousands losing their homes to foreclosure; credit markets caving; and the Federal Reserve applying an economic transfusion.
Connecticut”™s economy has continued to grow more than 3 percent annually, according to the outlook. This growth is continuing but slowing, both on a state level and nationally. The report also finds that job growth parallels economic growth, though it is fading at a more aggressive level.
According to the report, the congressional Joint Economic Committee (JEC) analysis on the subprime crisis in Connecticut foresees losses of $1.4 billion: $876 million directly and another $531 million through declining prices of properties in neighborhoods where foreclosures occur.
The conclusion finds that the significant damage on the national economy has been predominantly limited to the residential housing market, and has left Connecticut largely unaffected. Â The tandem effects of a healthy global economy boosting American performance and American policy managers keeping the economy clear of inflation could lead to a “soft landing,” the report states. Though it made clear the “task is now more difficult than anyone thought it would be a year ago, or even three months ago.”
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