Report States that California Economy is Expected to Grow

Southern California has started down the long road of economic recovery, according to a report released by the Los Angeles County Economic Development Corporation. The 2011-2012 Economic Forecast and Industry Outlook Report states that international trade especially with Japan is expected to grow for Los Angeles County during 2011 and 2012. Employment within the area’s tourism and entertainment sectors is also expected to increase during that time frame as well, mostly due to the commercial development of the area around L.A. Live. “We project that the California and U.S. economies will grow moderately in 2011 and 2012,” said LAEDC Chief Economist Nancy D. Sidhu, Ph.D. Though California had an unemployment rate of 12.5 percent in 2010, which is the second highest in the country, that number is expected to drop to 11.5 percent by 2011 and continue to gradually decline by 2012, the report said. Unfortunately, while the tourism, entertainment, technology, and international trade sectors are predicted to grow, the housing sector will only improve by a small margin. The LAEDC also forecasts that unemployment rates for the rest of nation will decline as well. The current rate of 9.4 percent is expected to drop to 9 percent by 2011, and will continue to drop by the following year.