Looking ahead to 2021, Florida TaxWatch (FTW) offered an uncertain economic outlook on the Sunshine State’s economy in the new year.
This week, FTW unveiled “2021 Economic Preview: An Uncertain Yet Hopeful Year of Growth,” a report looking at the state’s economy.
“Floridians have plenty of reason to be cautiously optimistic as the state’s economic picture in 2021 appears mixed and uncertain. Although strong job creation will certainly aid Florida’s labor market recovery, personal income will not grow as rapidly for many families,” FTW noted.
Florida TaxWatch President and CEO Dominic Calabro weighed in on the findings on Wednesday.
“As we close out a tumultuous year for Florida, defined by COVID-19 and its resulting disruptions to everyday life, we consider what may lie ahead. Overall, Florida’s economy in 2021 will be uncertain, influenced largely by pandemic changes, but there is reason to believe next year will be a hopeful year of growth for a state on the road to economic recovery. With several promising vaccines on the horizon and gradually improving labor market conditions, Florida looks poised to undergo the slow but steady process of economic rebuilding over the coming year,” Calabro said.
The report forecasts some sectors of Florida’s economy seeing growth in 2021 with an 11.9 percent increase in the Leisure and Hospitality sector; and 8.1 percent job growth in both the Education and Health Services area and the Financial Activities field.
“Although third on the list, Financial Activities will be the fastest-growing economic sector in Florida over the 2020-2023 period thanks in part to the sector’s high telework feasibility, making it easier for employees to work from home. It should be noted, however, that the bulk of the job growth in Leisure and Hospitality will be due to companies reclaiming many of the jobs lost during the pandemic’s earlier months,” FTW noted.
Still, FTW stressed that some Floridians will not immediately benefit from the economy recovering.
“Despite solid job growth prospects, there are some indications that these benefits will not readily translate into the consumer market. The predicted decrease can be explained partly due to falling stimulus and unemployment payments for many families, which originally offset some of the recession’s impacts in 2020,” FTW noted.
FTW noted that the state should continue to have a healthy housing market.
“After posting an impressive showing in the latter half of 2020, Florida’s housing market is predicted to remain a robust seller’s market in 2021 as declining inventory and strong demand drives home prices to new highs,” FTW noted.
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