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October 03, 2007

North Carolina's ups and downs

North Carolina's economy has been through a lot this decade: a recession, the transformation out of manufacturing into services, state budget shortfalls and reactions to 9/11. N.C. State University's Mike Walden comments on the state's economy over the past six years, comparing it to that of the nation and the Southeast. Listen

"First of all, the recession that we had beginning in 2001 and in many regions really didn't end until around 2003 hit North Carolina harder. and the recession in North Carolina lasted longer than in both the nation and in the Southeast," says Dr. Walden, a North Carolina Cooperative Extension economist. "For example, in terms of manufacturing we saw that manufacturing in the nation and the Southeast began to turn around in 2003. It didn't begin to turn around in North Carolina until 2004.

"The second difference, however, is that once our economy got back on track and, for example, in manufacturing in North Carolina it was in 2004 and in the broader economy it was really in 2003," he adds. "Once our economy in North Carolina got back on track we have actually progressed faster than the nation as well as faster than the Southeast. So this is an example of where it is important to know the time period you are comparing.

"If you look at North Carolina this decade -- the entire decade -- we don't look very good in terms of comparisons to other states. But if you look at our performance since the recession in North Carolina ended and since our economic growth has started on an upward trend, we actually perform much better than other states in the country."

Posted by deeshore at October 3, 2007 08:33 AM