Thursday, September 19th, 2019

Ball State study suggests slowing growth

Posted: Thursday, December 13, 2018

Source: Inside INdiana

A new report from Ball State University suggests the potential for slower economic growth in Indiana next year. During the 23rd annual Indiana Economic Outlook Luncheon in Muncie, Center for Business and Economic Research director Mike Hicks predicted Indiana’s economy would grow at a slightly slower pace in 2019 than the predicted national rate.

The report predicts 2.3 percent national Gross Domestic Product growth in 2019, down from 3 percent in 2018. In Indiana, it pegs growth at 2.1 percent, with the state adding about 20,000 jobs throughout the year.

Hicks believes this year’s Tax Cuts and Jobs Act, current monetary policy and a growing trade war will combine to slow growth. Specifically, he says tax reform resulted in larger budget deficits, and he expects between two and four more rate increases from the Federal Reserve by the end of next year.

The prediction comes at a time when Hicks says the national economy is in its ninth consecutive year of expansion with labor markets performing strongly and wages having grown.