This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Forecast Sees Slow Economic Growth In New England


BOSTON (AP) â¿¿ Sluggish economic growth will continue in New England, with much of the region not seeing a return to pre-recession employment levels until 2015 at the earliest, according to a forecast released Wednesday.

The four-year forecast developed by the New England Economic Partnership suggests that Massachusetts, New Hampshire and Vermont will fare best over that period, while Rhode Island's unemployment rate will remain the highest in the region.

Maine and Connecticut will also struggle to reach pre-recession jobs levels by the end of 2016, the economists said.

The forecast sees average employment growth of 1.5 percent for the entire six-state region, and average overall economic growth of 3.3 percent over the four-year period. The economists said 2 percent growth would be needed to make a significant dent in unemployment.

The conclusions stem from the likelihood that the global economy will continue to sputter for the foreseeable future. New England has already experienced a disproportionate drop in exports to Europe.

The forecast also hinges on one key assumption.

"This assumes, of course, that we are not going to fly over the fiscal cliff, that there will be some agreement to keep us from experiencing the worst parts of that," said Alan Clayton-Matthews, a Northeastern University economist.

But if President Barack Obama and Congress fail to broker a deal by Dec. 31 to stave off tax increases and massive spending cuts, New England will suffer harsher consequences than the nation as a whole, the economists said.

In fact, according to an analysis by Moody's Analytics, four New England states â¿¿ Connecticut, Massachusetts, Rhode Island and Vermont â¿¿ would be among the seven hardest-hit states if the nation goes over the fiscal cliff, and all six states in the region would be among the top 20 in expected job losses.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
TSLA $211.53 -4.96%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs