Economic forecast trends downward: Experts not surprised
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New numbers, just out, show a slowing economy in Washington state. And one lawmaker who serves on the Economic and Revenue Forecast Council is cautioning restraint in the days to come. Ruth Johnson reports from Olympia.
Johnson: Projections show that the state revenue forecast has decreased, by 67 million dollars this biennium. And the trend is expected to continue through 2019, with a continuing slide in revenue, to the tune of 442 million dollars.
Member: “This is not a surprise to me because the economy, frankly, has slowed down. One of the major reasons is the reduction in the price of oil. China is going through some real problems and reformation and so their economy is down. That has an impact on Washington state.”
Johnson: Republican Representatative Terry Nealey, a ranking member of the House Finance Committee, says the changes in China plus an increase in the strength of the dollar mean fewer exports, less revenue. A $67 million forecast reduction, he says, is quite small compared to a $38 billion budget. He is cautioning against a knee-jerk reaction.
Ruth Johnson, Olympia.
###Washington State House Republican Communications
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