Stockton, CA — California’s economic future looks bright and should accelerate in 2015 according to two forecast groups.
The Business Forecasting Center at Stockton’s University of the Pacific projects California’s overall economy will continue to grow. The forecasters point to non-farm payrolls, which recently surpassed their 2007 pre-recession peak of 15.4 million jobs. However, the projections for 2014 is a little overcast as the growth in both employment and gross state product (GSP) will be a moderate 2 to 3%. The forecast anticipates a stronger GSP of 3.5% to 4% growth from 2015 to 2017 with homebuilding a major factor in that growth.
The regional outlook predicts the Central Valley economic recovery is already well underway. Forecasters say that while the drought is having some impact on agricultural production and could reduce employment by about 1% in the San Joaquin Valley this year, it is not large enough to stop economic recovery in the Valley.
Another forecast also released today predicts California will outpace the nation in job growth over the next couple of years. The UCLA Anderson Forecast estimates California will add 700,000 payroll jobs through 2016.
However, California’s recent loss of the Tesla battery plant to Nevada has sparked a debate on state taxes and environmental regulations, which opponents say could dim these forecasts.