LANSING – A Federal Reserve economist Thursday said he expects 2020 to be more positive for the state’s economy than 2019.
“One thing to keep in mind is that in most of the years since the recession, Michigan has outperformed its trend on this basis than the U.S.,” said Martin Lavelle, business economist with the Federal Reserve. “So the trend line of growth in the Michigan economy is somewhere between 1.1 and 1.3 percent.”
Lavelle was pointing out that historically, Michigan has gone into recessions earlier than the nation, and come out faster than the nation due to the state’s economic structure.
For 2019, Lavelle told the Fourth Annual Michigan Economic Forecast Forum, the nation continued to see modest growth. Michigan, however, had different issues to deal with — principally uncertainty in terms of trade policy with the rewrite of NAFTA and the trade war with China, as well as a major labor strike in the auto sector.
With the absence of a strike and if trade relations settle out in 2020, Lavelle said the state’s economy could return to more robust growth rates.
This story was published by the Small Business Association of Michigan.