A new economic model says that Connecticut has very few factors in its favor as it tries to stimulate a strong economic recovery. WNPR’s Harriet Jones.
UConn economist Steven Lanza has modeled Connecticut’s resilience in recession, using previous experience to predict how long it may take to recover what the state has lost in this economic downturn. Looking at the 2001 recession, he notes that Connecticut had steeper job losses, and took more months to recover than most other states in the nation. In addition, the state’s diversified economy may have been a hindrance rather than a help, because it meant that Connecticut had no one strong sector to build on in recovery. Lanza says he was most surprised to discover that having a more educated workforce didn’t help Connecticut in a short term recovery.
Lanza says this recovery will be different than that from 2001, in that construction is unlikely to play a major role. He does expect that the weak dollar will mean strong exports, and could signal greater importance for manufacturing firms.
For WNPR, I'm Harriet Jones.