State economist: Recession to last another year

12/17/08 Mitch E. Perry
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This morning the Florida House was given sobering news about the state of Florida’s economy.

The upshot, delivered from Legislative Economist Amy Baker was that things won’t be getting better anytime soon. Baker said the key ingredient in Florida’s economy is new construction. But she says that won’t come back until the state deals with its considerable current inventory of available housing.

Baker said she expected the state to actually experience growth in the next year, but it would be modest, at 1.6 percent. But she said that was predicated on the credit markets opening up by next March. If that doesn’t happen, it could be a deeper recession than anticipated.

Florida already relies heavily – some say too heavily – on sales taxes for its revenue. Baker said the state is actually going to rely on even more for the short term.

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