NEWARK--Economic growth throughout 2007—including a slumping housing market, turbulent financial markets, and finally, a gradual rebounding despite drags from the falling housing market—was the subject of yesterday’s Newark Regional Business Partnership breakfast, held at the Newark Club at Newark Center.
Three panelists—Rae Rosen, Senior Economist and Assistant Vice President at the Federal Reserve Bank of New York; James W. Hughes, Dean of the Bloustein School of Rutgers University; and Joel Naroff, Chief Economist at Commerce Bank—looked closely at the key factors underlying economic and financial cross currents and what they mean to New Jersey. The general message of the panel was the regional economy has slowed, reflective of national trends.
According to Rosen, New Jersey remains at or near record levels of employment but the growth rate is among the slowest in the region. “Economic activity was growing at a moderate pace,” she said. “We project only a modest slowing in job growth in the final months of 2007. However, the downside risks for the national economy and financial sector have increased and that increases the downside risks for the region.”
Hughes noted that “the population is experiencing noticeable decline. In 2006, 73,000 left the state.” He also pointed out that New Jersey has the highest housing costs in the country.
Finally, Naroff said: “The challenges to the economy are consumer spending; which has slowed.” He also said that improved technology would allow older building to be reconfigured for the information age; which could help older cities.
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