Florida’s Economy Set to Soar, But There’s a Catch, Experts Warn
DEBARYLIFE – Sunshine State’s economy is predicted to grow faster than the national one through 2027. Although there are a few warning signs, UCF economist Sean Snaith believes that Florida’s “jumbo jet economy” will fare better than the rest of the country in the coming years.
The director of UCF’s Institute for Economic Forecasting, Snaith, issued his most recent state projection early on Thursday.
Projected population growth and GDP above the national average through 2027 will result from the massive migration of people entering the state.
Snaith predicts that Florida will continue to cruise at a higher altitude than the other states. We are moving forward because of the “twin engines” of a thriving job market and population expansion.
But there might be further effects from this population increase. A record amount of consumer credit card debt, with an average interest rate of 21% in the state, has caused Snaith to warn of “some turbulence.”
The cost of living has been rising faster than state pay increases for more than two years, he said as the explanation for this. People may be more vulnerable to a “financial shock” because it is anticipated that they will spend less money in the near future.
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As a precaution, Snaith advised Florida to buckle up for the voyage through these reasonably priced skies.
Here are a few more noteworthy points from Snaith’s prediction:
Housing: A major economic driver during the next few years may not be housing due to high mortgage rates, which are a result of rising inflation and Federal Reserve policy. Both the price at which existing homes are selling and the quantity of new homes being built are trending lower.
Employment Growth: In 2024, it is anticipated that there will be a national slowdown in the economy. While growth rates are predicted to decline to 0.6% by 2027, Florida saw 5.7% year-over-year growth in 2022.
Population: The state will see an increase in retirees and job searchers as many “baby boomers” approach the conclusion of their careers.
The projected growth rate for personal income in 2024–2027 is 3.6% on average. Florida is expected to expand on average by 0.8% faster than the US throughout this period.
Economic expansion: The state of Florida is expected to experience 2.5% annual growth in GDP, primarily as a result of the migration wave. Nevertheless, in 2024 and 2025, this growth will: drop to 3.3% and 2.2%, respectively grow to 2.5% in 2026 before declining once further to 2.1% in 2027.